Envisioning a future for America where strength, prosperity, and peace are tangible realities involves a decisive focus on policies that support the American worker, foster economic growth, and recognize manufacturing as a key strength. This requires a commitment from Republican lawmakers and the Trump administration to enhance existing tax reforms.
To achieve this vision, it is crucial for Congress to act swiftly to extend the provisions of President Donald Trump’s 2017 Tax Cuts and Jobs Act. Allowing this legislation to lapse would pose serious risks to American businesses, manufacturers, consumers, and families. Without the continuation of Trump’s tax plan, taxpayers across all income levels would face increases, with projections indicating an average hike of approximately 22 percent, translating to over $1,600 for the average American.
COST OF FAILURE: IMPACT OF TARIFFS AND EXPIRING TAX CUTS
A recent study by the National Association of Manufacturers revealed alarming consequences if these tax reforms are not maintained, projecting a loss of 6 million jobs and a staggering $1.1 trillion hit to the economy, along with a reduction of $540 million in wages.
The signing of the 2017 tax cuts marked a pivotal moment for the manufacturing sector in the U.S., yielding the highest rate of job creation in that field in over two decades during 2018. This surge resulted in increased wages, better benefits, and significant investment in new facilities. However, with key tax provisions beginning to sunset, there is an urgent need to secure their future before they diminish further.
Central to these provisions is full expensing, which permits businesses to immediately deduct the costs of machinery, tools, and upgrades from their taxable income. This fiscal relief allows companies to reinvest in their workforce and infrastructure, fostering further economic growth.
Additionally, retaining Section 199A is vital, which offers a 20 percent deduction for approximately 26 million small businesses. An Ernst and Young analysis from 2024 noted that this provision supported 2.6 million jobs, contributing $325 billion to the economy and an additional $161 billion in worker compensation.
These examples highlight the pro-growth and pro-manufacturing ethos of President Trump’s tax reforms. Upholding these initiatives remains a priority for Republicans this year, directly impacting the livelihood of countless Americans.
TRUMP ALLIES SPOTLIGHT PERMANENT TAX CUT PLAN IN CONGRESS
Renewing the Trump tax cuts is essential not only to avert a historic tax burden on families and businesses but also to fuel robust economic growth, with estimates projecting $284 billion in manufacturing growth alone.
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In the wake of an administration that has imposed regulatory constraints on small businesses, there is a critical need for Congress to foster an environment conducive to economic expansion. Currently, manufacturers are incurring $350 billion annually just to navigate compliance costs, funds that could be redirected towards enhancing operations and job creation. Fortunately, measures are being introduced to recalibrate the regulatory landscape, enabling industries to leverage transformative investments to bolster U.S. manufacturing.
As President Trump conveyed to Congress and the public in March, “We are going to renew the unlimited promise of the American dream,” which can be realized by providing American workers with the security and opportunities they deserve, benefitting the nation as a whole.
The urgency for action cannot be overstated. Failure to act risks reversing the strides made, impacting American families directly.
Republican Tom Emmer represents Minnesota’s 6th District in the U.S. House of Representatives, where he holds the position of Majority Whip.
Jay Timmons is the President and CEO of the National Association of Manufacturers.
