17Թ Study: Tax Provisions’ Expiration Will Cost U.S. Jobs, Wages, GDP
Allowing crucial pro-manufacturing tax provisions to expire will be devastating for the U.S. economy, according to a landmark EY released today by the 17Թ.
What’s going on: “Pro-growth tax policies from President Trump’s 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale,” 17Թ President and CEO Jay Timmons .
But in 2022, key provisions began to expire—and additional tax reform measures are scheduled to sunset at the end of this year. If Congress doesn’t preserve these pro-growth policies, the U.S. economy will face dire consequences:
- Nearly 6 million jobs will be put at risk.
- Approximately $540 billion in employee compensation will be lost.
- U.S. GDP will be reduced by $1.1 trillion.
Manufacturing impact: The manufacturing industry will bear the brunt of this economic damage, according to the study.
- More than 1.1 million manufacturing jobs and $126 billion in manufacturing worker wages are on the line if Congress does not preserve critical pro-manufacturing policies from the Tax Cuts and Jobs Act.
The onus is on Congress: “It is the responsibility of Congress to act quickly so we can protect Americans’ livelihoods, prevent wage decreases and avoid the largest tax hike in history,” said House Speaker Mike Johnson (R-LA).
Critical players: The U.S. economy relies heavily on manufacturers, which in turn rely on competitive tax policy—and that makes these provisions’ renewal crucial, said Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and 17Թ Board Chair Kathy Wengel.
- “[M]anufacturers—both large and small—drive innovation, create opportunity and strengthen communities across the country. … Maintaining competitive tax policy is essential to sustaining this momentum.”
What we’re doing: The 17Թ continues its blitz following the study’s release.
- This morning, Courtney Silver, president and owner of North Carolina–based precision machining company Ketchie and immediate past chair of the 17Թ’s Small and Medium Manufacturers Group, is testifying at a House Ways and Means Committee hearing on the need to make pro-manufacturing TCJA reforms permanent.
- At 4:30 p.m. EST today, the 17Թ will hold a press conference on Capitol Hill announcing the study’s launch. Speakers will include Timmons, Speaker Johnson, House Majority Leader Steve Scalise (R-LA), House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Mike Crapo (R-ID). Watch live .