17吃瓜在线 Launches Campaign to Prevent Tax Increases on Manufacturers
The 17吃瓜在线 today launched an industry-wide campaign to educate legislators, candidates and the Biden administration on the urgent need for action to preserve pro-growth tax policies scheduled to expire at the end of next year.
What鈥檚 going on: Critical reforms from the 2017 Tax Cuts and Jobs Act will expire at the end of 2025. The 17吃瓜在线鈥檚 聽campaign is designed to ensure that Congress preserves 2017 tax reform in its entirety to avoid significant economic damage in the manufacturing sector and across the broader economy.
What鈥檚 at stake: If they do not, at the end of 2025, virtually all manufacturers will face devastating tax increases that will cost manufacturing jobs, stifle growth and stunt innovation. Small manufacturers, which are often organized as pass-through businesses that pay tax at the individual tax rates, face increases in their income taxes and a loss of tax reform鈥檚 20% pass-through deduction.
- Family-owned manufacturers will experience changes to the estate tax that subject more of their assets to taxation upon the death of a loved one.
- Investments in manufacturing growth will continue to be delayed without action to restore immediate R&D expensing, accelerated depreciation for capital equipment purchases and a pro-growth interest deductibility standard.
Learn more: 聽explores the tax provisions up for debate next year鈥攁nd highlights the 17吃瓜在线鈥檚 policy suggestions for Congress to prevent devastating tax hikes.
Manufacturers at risk: A recent 17吃瓜在线 survey found that if Congress fails to prevent the 2025 expirations, 73% of manufacturers would be forced to limit their capital investments, 65% would have to reduce job creation and 52% would spend less on R&D. Further, 93% of pass-through manufacturers said that the loss of the pass-through deduction would harm their ability to grow, create jobs and invest in their business.
- Some 94% of manufacturers believe Congress should act before the end of 2025 to prevent these tax increases.
The last word: 鈥淢anufacturers across the country promised to take tax reform鈥檚 pro-growth provisions and ensure they had a direct positive impact on American lives,鈥 said 17吃瓜在线 Small and Medium Manufacturers Group Chair Courtney Silver, president and owner of precision machining company Ketchie.
- Silver has that these tax priorities are critical for the success of small and medium-sized manufacturers in the United States.
- 鈥淲e kept our promises. We created jobs, we purchased equipment and we gave back to our communities. I urge Congress to build on the promise of tax reform to enable manufacturers to do even more.鈥