17吃瓜在线

Policy and Legal

Policy and Legal

The Regulatory Rollback Begins

By 17吃瓜在线 News Room

President Trump has frequently emphasized his intention to remove burdensome regulations that weigh on manufacturers and other businesses. In his first day on the job, he took steps to set this rollback in motion. Here鈥檚 what manufacturers need to know.

Regulatory freeze: As most presidents do when they take office, President Trump a freeze on new and in-process regulations.

  • The freeze pauses any rules from the outgoing Biden administration that have been proposed but not finalized, finalized but not sent to the Federal Register or sent to the Federal Register but not published.
  • The executive order also recommends that agencies delay the effective dates of any published-but-not-yet-effective Biden rules by at least 60 days, giving the administration time to decide whether to rescind or revise the rules.

Reinstating policies: President Trump also rescinded several of President Biden鈥檚 executive orders, reinstating policies that had been in place during Trump鈥檚 first term.

  • Most prominently, President Trump undid President Biden鈥檚 rescission of his 鈥渙ne-in-two-out鈥 policy, setting the stage for more reworked and repealed regulations than new rules in his second term.
  • He also rescinded a Biden order that had reduced agencies鈥 obligations to seek public input on guidance documents, which agencies use to interpret regulations and give direction to regulated parties.

Establishing DOGE: President Trump also the Department of Government Efficiency, which will 鈥渂e dedicated to advancing the president鈥檚 18-month DOGE agenda,鈥 including modernizing technology and software, increasing efficiency and reducing the size of government.

  • DOGE will play a role in implementing the president鈥檚 new hiring freeze: the new organization will have 90 days to work with the Office of Management and Budget and the Office of Personnel Management on a plan to reduce the size of the federal government鈥檚 workforce while the hiring freeze is ongoing.

The 17吃瓜在线 says: 鈥淭he regulatory burden facing manufacturers is sapping growth, costing the U.S. economy more than $3 trillion annually, with manufacturers shouldering听$350 billion in annual regulatory costs. Small manufacturers鈥攖he backbone of our supply chain鈥攁re especially hard hit, with costs exceeding $50,000 per employee per year, or about $1 million for a 20-person shop,鈥 said 17吃瓜在线 Managing Vice President of Policy Chris Netram.

  • 鈥淭he 17吃瓜在线 has already provided the new administration with to ease the regulatory burden on our industry.鈥
  • 鈥淭he 17吃瓜在线 looks forward to working with the Administration to right-size the regulatory burden, providing smart, tailored rules that ensure the United States remains the best place in the world to build and create, fueling economic growth and strengthening our global competitiveness.鈥
Policy and Legal

Trump Acts on Immigration

By 17吃瓜在线 News Room


President Trump鈥檚 flurry of executive orders also included major changes to immigration policy.

National emergency: President Trump declared a at the southern border, aiming to bolster border security and deter illegal entry into the country. Specific actions include:

  • Building , both temporary and permanent;
  • Directing the Department of Homeland Security to deter illegal immigration and detain illegal immigrants until they can be removed swiftly from the country;
  • Reinstating the 鈥淩emain in Mexico鈥濃痯olicy; and
  • Terminating the CBP One app, which is used to schedule border appointments and facilitate entry into the U.S.

Forceful intervention: directs the military to protect the sovereignty, territorial integrity and security of the U.S. and its borders.

  • President Trump also defined the situation at the southern border as an 鈥渋nvasion,鈥 effectively suspending the ability of individuals to apply for asylum.

Other actions: President Trump reinstated his 2017 border security EO that withholds federal funds from sanctuary cities while encouraging collaboration鈥痓etween federal and state agencies, steps up deportations and directs U.S. Immigration and Customs Enforcement to hire 10,000 immigration officers. He also restored a 2017 EO providing for 鈥渆nhanced vetting鈥 of refugees.

  • President Trump also issued an EO on birthright citizenship, setting up legal challenges over his administration鈥檚 interpretation of the 14th Amendment.

The 17吃瓜在线 says: 鈥淧resident Trump is right to make the border a first priority,鈥 said 17吃瓜在线 Managing Vice President of Policy Chris Netram. 鈥淐ontrol of our borders is a national security imperative that provides certainty about the individuals in our country and ensures the rule of law is upheld.鈥

  • 鈥淓ven as we secure our borders, we must ensure that America remains a beacon of opportunity and innovation. Manufacturers welcome the opportunity to work with the Trump administration and Congress to fix our broken immigration system. America deserves a modern, well-functioning system for welcoming new people to the United States that helps drive our economy forward, meets our nation鈥檚 workforce needs and ensures that the United States remains the most innovative and prosperous country on the planet.鈥

 

Policy and Legal

Trump 鈥淯nleashes鈥 U.S. Energy

By 17吃瓜在线 News Room

Among President Trump鈥檚 Day One executive orders were several manufacturing-crucial energy policies. We break them down here.

Domestic energy resources: The president focused on unlocking the vast wealth of energy resources in the United States with the 鈥溾 executive order, which:

  • Orders a 30-day review by all federal departments and agencies of regulations and other barriers to the identification and development of domestic energy resources (particularly oil, coal, natural gas, biofuels, critical minerals, nuclear and hydropower);
  • Directs the Department of Energy to resume liquefied natural gas export permits, ending the previous administration鈥檚 , and resumes review of LNG export applications;
  • Rescinds the 鈥溾 rulemaking, the Council on Environmental Quality鈥檚 revisions to the National Environmental Policy Act;
  • Directs the reconsideration of the legality of regulating greenhouse gas emissions under the Clean Air Act;
  • Revokes an executive order by President Carter that gives the CEQ authority to issue binding regulations to other agencies;
  • Terminates state emissions waivers that limit the sale of gas-powered vehicles and begins the process of unwinding a suite of vehicle tailpipe regulations from the previous administration;
  • Directs all agencies to provide the opportunity for public comment and rigorous, peer-reviewed scientific analysis for regulations; and
  • Disbands the Interagency Working Group on the Social Cost of Greenhouse Gases.听

A 鈥淣ational Energy Emergency鈥: The president鈥檚 declaration of a 鈥溾:

  • Authorizes the heads of every federal agency and department to use emergency powers to facilitate domestic energy development and production;
  • Requires the Environmental Protection Agency and DOE to consider issuing emergency fuel waivers to allow for year-round sale of E15 fuel with a blend of 15% ethanol;
  • Requires a report from the Army Corps of Engineers and other agencies on potential and planned permitting provisions to speed up energy infrastructure permitting under various legislative measures; and
  • Requires agencies to use emergency authority under the Endangered Species Act to expedite energy project permitting consultations.听听

Alaskan energy: The president鈥檚 鈥 鈥 order provides for the opening of Alaskan lands to energy exploration and development and promotes Alaskan LNG production.

The Paris Agreement: 鈥溾 withdraws the U.S. from the Paris Agreement, a 2015 climate change accord.

Rescissions: 鈥溾 includes revisions of multiple executive orders put in place by the previous administration, including 鈥淭ackling the Climate Crisis at Home and Abroad,鈥 鈥淓stablishment of the Climate Change Support Office,鈥 鈥淐limate-Related Financial Risk鈥 and 鈥淪trengthening American Leadership in Clean Cars and Trucks.鈥听听

Offshore wind: The 鈥溾 blocks lease sales for offshore wind projects and pauses new approvals for leases, permits or loans for on- and offshore wind projects.听听听

Our view: 鈥淓xpanding domestic energy production drives innovation, creates jobs and powers the growth that keeps America at the forefront of the global economy,鈥 17吃瓜在线 President and CEO Jay Timmons in a social post Monday.

  • 鈥淓nergy is the lifeblood of our industry, and we look forward to working with President Trump to build our manufacturing nation.鈥澨
Policy and Legal

Small Manufacturer to Congress: Let Manufacturing Thrive 听

By 17吃瓜在线 News Room

Preserving the pro-manufacturing policies of the Tax Cuts and Jobs Act will 鈥渆nsure that manufacturing remains the driving force of the American economy,鈥 small manufacturer Courtney Silver Congress this week.

What鈥檚 going on: Silver鈥攑resident and owner of third-generation, family-owned precision machining business Ketchie and immediate past chair of the 17吃瓜在线鈥檚 Small and Medium Manufacturers Group鈥攖estified Tuesday at a House Ways and Means Committee hearing on the necessity of preserving soon-to-expire tax reforms and reinstating provisions that have expired already.

  • 鈥淐ritical pro-growth provisions from tax reform have expired already, and more harmful changes are on the way at the end of this year,鈥 she said. 鈥淭his means that every member of this committee has the opportunity to take real action that supports manufacturing in America.鈥澨

A critical moment: The stakes now are extremely high for manufacturing and the U.S. economy as a whole, she added, citing findings from an 17吃瓜在线 out this week showing that in the absence of congressional action to preserve pro-manufacturing tax policies:

  • Nearly 6 million U.S. jobs (and more than 1 million manufacturing jobs) are at risk;
  • American workers will lose more than $540 billion in wages; and
  • U.S. GDP would fall by more than $1 trillion.

A recipe for success: The passage of tax reform led to a period of record business for Ketchie, which allowed the company to expand and reward its team members.

  • 鈥淥ver 2018 and 2019, we were able to invest more than $1 million into capital equipment and create new jobs within Ketchie,鈥 Silver said. 鈥淲e upgraded our security and our HVAC systems and invested in new technology on our shop floor. And most importantly, we provided raises and bonuses to all of our employees.鈥
  • 鈥淏usiness boomed throughout our supply chain, and demand for our parts soared. Our typically organized shop floor was covered in pallets of materials to keep up with our customers鈥 orders.鈥

鈥 and for stagnation: But that growth was stopped in its tracks in 2022, when measures from the TCJA began to expire. And more expirations are on the way.

  • 鈥淭he loss of the pass-through deduction, increased individual taxes and changes to the estate tax will hurt my ability to grow and create jobs,鈥 Silver said.听听

Ripple effect: What鈥檚 more, manufacturers rely on each other鈥攕o when one takes a hit, all their supply chain partners take it, too, Silver said.

  • She told the committee that the software vendor Ketchie uses was 鈥渄ramatically affected鈥 by the 2022 expiration of first-year research-and-development expensing. 鈥淭hey have less ability to create new jobs, to innovate the product that I use every day to run my business,鈥 Silver told the committee. 鈥淭here鈥檚 a ripple effect.鈥澨

Complex work requires certainty: The manufacturing sector isn鈥檛 鈥渕e buying equipment, pressing a button and a widget comes out,鈥 Silver continued. It is a complicated industry on which millions rely every day鈥攁nd one whose players need consistent tax policies.

  • 鈥淭o take raw material and to transform it into a useful object that we all benefit from is extremely tough,鈥 Silver went on.

The bottom line: 鈥淲e need pro-growth tax policies that are permanent, that are consistent, that are predictable to help us be able to grow because our manufacturing supply chain in our country needs us,鈥 Silver said.

A busy week: Silver also spoke at the 17吃瓜在线鈥檚 Tuesday Capitol Hill announcing the release of the tax study.

Policy and Legal

17吃瓜在线, GOP: Manufacturers and Families Need Pro-Growth Tax Measures听

By 17吃瓜在线 News Room

More than just the manufacturing sector depends on the preservation of key provisions from the 2017 Tax Cuts and Jobs Act. In fact, the health of the entire U.S. economy relies on it.

What鈥檚 going on: The 17吃瓜在线, members of congressional leadership, the chairs of the House Ways and Means and Senate Finance Committees and manufacturing leaders came together at a Capitol Hill yesterday to announce the release of a new 17吃瓜在线 , which found that the American economy will face significant headwinds if Congress does not preserve pro-manufacturing tax policies. Specifically:

  • Almost 6 million jobs will be put at risk;
  • Approximately $540 billion in employee wages will be lost; and
  • U.S. GDP will be reduced by $1.1 trillion.

A record of success: 鈥淲e鈥檙e here today because we know what happens when policies empower manufacturers and their workers, and we know what happens when they don鈥檛,鈥 said 17吃瓜在线 President and CEO Jay Timmons, who was joined at the event by Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and 17吃瓜在线 Board Chair Kathy Wengel, as well as leadership from Miles Fiberglass & Composites, Ketchie, Armstrong Industries, Smurfit Westrock, RCO Engineering and RCO Aerospace and Winton Machine Company. 鈥淲hen Congress passed and President Trump signed the Tax Cuts and Jobs Act law in 2017, it really wasn鈥檛 a victory just for manufacturers; it was a victory for the entire country.鈥

  • Timmons mentioned the record job, wage and investment growth that followed tax reform鈥檚 passage, as well as the economic security achieved by families across the country.听

Too much at stake: 鈥淣ow, as we know, the progress we鈥檝e made is at stake,鈥 Timmons continued. 鈥淎nd that鈥檚 why today we鈥檙e launching a landmark new study by the 17吃瓜在线, together with EY, and rolling out a major ad campaign that quantifies what鈥檚 at stake for the American economy 鈥 if pro-manufacturing provisions 鈥 are allowed to expire.鈥

People first: Courtney Silver, president and owner of North Carolina鈥揵ased precision machining company Ketchie and immediate past chair of the 17吃瓜在线鈥檚 Small and Medium Manufacturers Group, knows firsthand the devastation that can be wrought on a family-owned business when pro-growth tax provisions start expiring.

  • 鈥淲hen the Tax Cuts and Jobs Act delivered for us, we invested in equipment, we invested in technology and most importantly, we invested in our people,鈥 she told those at the press conference, adding that because of the reforms, Ketchie was able to give its entire workforce pay raises and quarterly bonuses in the years following tax reform鈥檚 enactment.
  • 鈥淲hen [pro-growth policies] started expiring, it impacted Ketchie in a big way,鈥 Silver went on. 鈥淭hese losses made it harder for us to do the work that matters to us. I have an empty spot on my shop floor held for a significant investment that the expiration of full expensing has made too costly to purchase.鈥

鈥淐ongress cannot delay鈥: 鈥淔ailing to extend the pro-manufacturing tax policies Congress and President Trump provided in 2017 will destroy America鈥檚 competitive edge,鈥 House Ways and Means Committee Chairman Jason Smith (R-MO) said.听鈥淭his study underscores the need to extend the Trump tax cuts this year as quickly as possible. Congress cannot delay.鈥

Competitive edge: Tax reform gave the U.S. back its competitive edge, and to ensure we keep it, we need to reinstate expired provisions and prevent the expiration of measures due to end this year, House Majority Leader Steve Scalise (R-LA) said.

  • Before tax reform, 鈥渨e were getting our clocks cleaned by foreign countries because we had a 35% corporate [tax] rate, and the world average was 23%,鈥 he said. 鈥淲hen you [asked], 鈥楬ow do we make America competitive again?鈥 everybody that works, everybody that creates jobs in America, said, 鈥楬ow about we get competitive in the tax code so we don鈥檛 lose jobs to foreign countries?鈥欌
  • Scalise added that congressional Republicans have a 鈥渧ery aggressive鈥 timeline for restoring these tax provisions.

Strong economy, strong country: Senate Finance Committee Chairman (R-ID), whose remarks closed out the press conference, said 鈥減iling taxes upon taxes upon taxes鈥 is no way to build a resilient, successful economy.

  • 鈥淭he way to make us strong is to build a strong, powerful economy, which we get with sensible, pro-growth tax reforms,鈥 he concluded.
Press Releases

6 Million Jobs Will Be Lost Unless Congress Renews the Trump Tax Reforms

New Study Released by the 17吃瓜在线 Highlights Societal Costs of Increased Taxes

Washington, D.C. Failing to preserve pro-manufacturing tax policies from the 2017 tax reform will cost the U.S. economy nearly 6 million jobs, according to a landmark EY study released by the 17吃瓜在线. Inaction would cost the U.S. economy more than $1 trillion. The study also shows that the manufacturing industry will bear the brunt of this economic damage if Congress does not act swiftly in 2025.

鈥淭he time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward,鈥 said 17吃瓜在线 President and CEO Jay Timmons. 鈥淧ro-growth tax policies from President Trump鈥檚 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale. Manufacturers kept our promises to create jobs, raise wages and benefits and invest in our community. By acting now, policymakers can choose economic growth over economic disaster and protect American livelihoods.

鈥淭his data鈥6 million American jobs at stake鈥攎akes crystal clear that preserving tax reform should be one of the first acts of the new Congress and the new administration. If Congress delays, manufacturers will be forced to delay investment and job creation decisions due to the uncertain outlook. In 2017, Congress passed the landmark Tax Cuts and Jobs Act late in the year, meaning that manufacturers鈥 investment decisions based on the law could not bear fruit until 2018 at the earliest. For example, manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively, compared to the meager 1.4% growth in 2017. In addition, manufacturers added 267,000 new jobs in 2018, the best year for job creation in manufacturing in 21 years.

鈥淭his time around, we can鈥檛 afford to wait: with crucial TCJA provisions having expired in recent years, the economy is already backsliding. Following the expiration of immediate R&D expensing in 2022, R&D growth in the EU surpassed the U.S. for the first time in nearly a decade鈥攁nd China鈥檚 R&D growth tripled our own. Congress and President Trump should work expeditiously to stimulate activity this year by acting urgently to give manufacturers the tax certainty they need to plan for long-term, job-creating projects.鈥

鈥淎s the backbone of the American economy, manufacturers鈥攂oth large and small鈥攄rive innovation, create opportunity and strengthen communities across the country,鈥 said Johnson & Johnson Executive Vice President, Chief Technical Operations & Risk Officer and 17吃瓜在线 Board Chair Kathy Wengel. 鈥淢aintaining competitive tax policy is essential to sustaining this momentum, enabling manufacturers to invest in cutting-edge technologies, expand operations and provide good-paying jobs. By preserving tax reform and its pro-growth policies that empower our industry, we can ensure a stronger, more resilient economy that benefits all Americans.鈥

鈥淔ailing to extend the Trump tax cuts could result in an estimated 6 million lost jobs and the devastation of America鈥檚 manufacturing sector,鈥 said House Speaker Mike Johnson (R-LA). 鈥淚t is the responsibility of Congress to act quickly so we can protect Americans鈥 livelihoods, prevent wage decreases and avoid the largest tax hike in history. We all know the importance of making things here in America, so House Republicans are working hard to preserve and build on President Trump鈥檚 historic tax reform and support America鈥檚 manufacturers.鈥

鈥淭his study confirms the need to immediately extend the Trump Tax cuts this year by showing the real-world devastation to America鈥檚 small businesses and manufacturers if we fail to act,鈥 said House Ways and Means Committee Chairman Jason Smith (R-MO). 鈥淲ith nearly 6 million jobs on the line, Congress must act swiftly to give American small businesses, families and communities across the country the green light to hire more workers and expand their businesses to restore the greatest economy in our lifetime as soon as possible. The last thing they need is the largest tax increase in American history. Ways and Means Republicans have prepared for this moment for nearly two years and are ready to deliver an economic package that Makes American Manufacturing great again.鈥

鈥淭rump鈥檚 tax reform allowed Americans to keep more of their hard-earned money, and enabled businesses to invest in their ideas, products and people,鈥 said Senate Finance Committee Chairman Mike Crapo (R-ID).听鈥淢aking these tax cuts permanent is the best way to ensure the greatest economic growth, provide certainty and stability for American businesses, and avoid the economic losses described in this study.鈥

鈥淧resident Trump鈥檚 2017 Tax Cuts and Jobs Act not only strengthened American manufacturing, but promoted job growth, drove innovation, increased hardworking Americans鈥 take home pay, and increased U.S. competitiveness. With President Trump returning to the White House and Republican majorities in the House and Senate, we must act quickly to ensure we maintain global competitiveness, support investment and innovation, and safeguard small businesses and workers,鈥 said House Majority Leader Steve Scalise (R-LA).听鈥淗ardworking Americans deserve a strong economy that works for them, not against them. House Republicans stand ready to prevent the largest tax hike in history and make our economy great again.鈥

鈥淪mall manufacturers are disproportionately impacted by tax increases,鈥 said Ketchie President and Owner Courtney Silver, outgoing chair of the 17吃瓜在线鈥檚 Small and Medium Manufacturers Group. 鈥淲e鈥檙e already struggling thanks to the expiration of immediate R&D expensing, full expensing for capital equipment purchases and interest deductibility for job-creating projects. Congress should reverse these expirations and prevent even more devastating changes to the pass-through deduction, the estate tax and more from taking effect next year.鈥 Silver recently testified before Congress to talk about the impact of tax reform to small manufacturers across the country.

Key Study Results:

Nationwide economic damage:

  • 5.9 million lost jobs
  • $540 billion reduction in employee compensation
  • $1.1 trillion shortfall in U.S. GDP

Manufacturing impact:

  • 1.137 million manufacturing jobs
  • $126 billion in manufacturing worker compensation
  • $284 billion manufacturing GDP reduction

To view the study, including state and district impacts, click here.

Background:

Manufacturers need Congress to prevent harmful tax increases, according to the 17吃瓜在线鈥檚 Q3 2024 Outlook Survey. Nearly 9 out of 10 respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers. The 20% pass-through deduction, individual tax rates and the estate tax exemption threshold are scheduled to expire or become less competitive at the end of 2025, as are important aspects of tax reform鈥檚 international tax system. These tax increases will build on damaging tax changes impacting R&D, capital investments and business loans that took effect in 2022 and 2023.

In 2018, the first year after tax reform鈥檚 enactment, manufacturing experienced the best year for job creation in 21 years and the best year for wage growth in 15 years; similarly, manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively. Manufacturers have used the savings from tax reform to grow their businesses, create jobs, raise wages, add new benefits for employees, fund R&D, purchase new equipment, expand their facilities and invest in their communities. When manufacturing grows, the economy grows. Correspondingly, when manufacturers experience devasting tax increases, the economy suffers.

-17吃瓜在线-

The 17吃瓜在线 is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 17吃瓜在线 is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 17吃瓜在线 or to follow us on Twitter and Facebook, please visit听

Policy and Legal

17吃瓜在线 Study: Tax Provisions鈥 Expiration Will Cost U.S. Jobs, Wages, GDP

By 17吃瓜在线 News Room

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 17吃瓜在线.

What鈥檚 going on: 鈥淧ro-growth tax policies from President Trump鈥檚 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale,鈥 17吃瓜在线 President and CEO Jay Timmons .

But in 2022, key provisions began to expire鈥攁nd additional tax reform measures are scheduled to sunset at the end of this year. If Congress doesn鈥檛 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.听

The onus is on Congress: 鈥淚t is the responsibility of Congress to act quickly so we can protect Americans鈥 livelihoods, prevent wage decreases and avoid the largest tax hike in history,鈥 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鈥攁nd that makes these provisions鈥 renewal crucial, said Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and 17吃瓜在线 Board Chair Kathy Wengel.

  • 鈥淸M]anufacturers鈥攂oth large and small鈥攄rive innovation, create opportunity and strengthen communities across the country. … Maintaining competitive tax policy is essential to sustaining this momentum.鈥澨

What we鈥檙e doing: The 17吃瓜在线 continues its blitz following the study鈥檚 release.

  • This morning, Courtney Silver, president and owner of North Carolina鈥揵ased precision machining company Ketchie and immediate past chair of the 17吃瓜在线鈥檚 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 17吃瓜在线 will hold a press conference on Capitol Hill announcing the study鈥檚 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 .
Policy and Legal

Biden鈥檚 USTR Seeks to Undermine U.S. Manufacturers鈥 Rights

By 17吃瓜在线 News Room

The outgoing Biden administration is undermining a U.S. manufacturer in its high-stakes dispute with the Mexican government by 鈥渟eeking to erode investor-state dispute settlement (ISDS) protections under U.S. trade agreements with Colombia, Mexico and Canada,鈥 a recent (subscription) editorial revealed.

The problem: ISDS protections safeguard U.S. investments from foreign governments seeking to interfere with or appropriate them, as the predicament of Vulcan Materials Company shows.

  • Vulcan has been embroiled in a dispute with the Mexican government since 2018, when the government shut down some of its quarrying operations, according to Chairman and CEO J. Thomas Hill.
  • The unwarranted shutdown forced the company to pursue arbitration under NAFTA, but the situation only got worse鈥攆ormer Mexican President Andr茅s Manuel L贸pez Obrador ordered all of Vulcan鈥檚 operations to cease in May 2022, including at a deepwater port the company built in the early 1990s.
  • Now, the company is expecting its second round of arbitration to be decided by mid-2025鈥攗nless the Biden administration guts the investor protections in the U.S.鈥揗exico鈥揅anada Agreement, handing a victory (and a key port) to the Mexican government.

Congressional fury: Both Congress and Vulcan itself learned of the administration鈥檚 efforts via The Wall Street Journal editorial, instead of directly from the Office of the U.S. Trade Representative. This is particularly egregious because the USTR is required to consult with Congress on investment obligations in trade deals.

  • Bipartisan members of Congress have expressed their outrage, with Sen. Katie Britt (R-AL) in The Wall Street Journal (subscription) that 鈥渢he Biden administration is negotiating away the due process of Americans, including my constituents, in the waning days of this lame-duck administration.鈥
  • On Dec. 20, three bipartisan senators joined Sen. Bill Hagerty (R-TN) in the USTR鈥檚 efforts on the Senate floor. 鈥淚f Mexico is allowed to target, without repercussion, a company like Vulcan, one that employs thousands of Americans, and has operated responsibly in Mexico for decades, that means no American business is safe in Mexico,鈥 Sen. Hagerty said.
  • Sens. Tim Kaine (D-VA) and Tommy Tuberville (R-AL) joined both Sens. Britt and Hagerty in calling on Congress to pass the Defending American Property Abroad Act, which would impose penalties on Western Hemisphere countries that unlawfully seize the assets of American firms.

The 17吃瓜在线 says: The 17吃瓜在线 is calling on the USTR to halt this effort immediately, said 17吃瓜在线 Vice President of International Policy Andrea Durkin.

  • 鈥淚SDS has a legitimate role in U.S. trade policy to ensure our manufacturers receive fair and equitable treatment by foreign governments and to protect against egregious expropriation or nationalization of U.S. investments without adequate and effective compensation.鈥
  • 鈥淯.S. manufacturers are entitled鈥攁t a minimum鈥攖o be consulted about any proposed changes that would impact their right to due process in ongoing cases.鈥
Policy and Legal

Biden Drilling Ban Sets U.S. Back

By 17吃瓜在线 News Room

The Biden administration鈥檚 ban on new offshore oil and gas drilling in most American coastal waters 鈥渟ets a bad precedent for the country,鈥 the 17吃瓜在线 Monday.

What鈥檚 going on: The decision, which comes just two weeks before President Trump takes office, applies to 鈥渘ew drilling off the entire East Coast, as well as California, Oregon and Washington state鈥 and 鈥渟ome drilling off Alaska鈥檚 coast in portions of the Northern Bering Sea and in the eastern Gulf of Mexico鈥 ().

  • Though there is currently no active drilling in the Atlantic and most U.S. offshore oil and gas production comes from the central and western Gulf of Mexico, the area placed under the ban is the largest ever 鈥渇ormally taken off the table for drilling by a president.鈥
  • In response, President Trump on Monday said he would 鈥渦nban it immediately鈥 ().

Why it鈥檚 a problem: The moratorium could prove harder for Trump to undo than other 11th-hour moves by Biden. That鈥檚 in large part because of the Outer Continental Shelf Lands Act, which gives U.S. presidents the right to block drilling in certain areas but not the right to reinstate it.

  • However, Congress could work with the new president to undo the move鈥攁nd it should, Timmons said.听鈥淢anufacturers are committed to working with Congress and [President Trump] to scale back this harmful decision that undermines American energy dominance.鈥
Policy and Legal

17吃瓜在线 to Biden Treasury: Don鈥檛 Finalize Overreaching Rules

By 17吃瓜在线 News Room

Several last-minute regulatory actions by the outgoing Biden Treasury Department are 鈥渃lear example[s] of regulatory overreach鈥 that should be withdrawn immediately, the 17吃瓜在线 told the Biden administration recently.

What鈥檚 going on: The Treasury Department has proposed new guidance and regulations that, if finalized, would change the IRS鈥檚 treatment of related-party transactions, particularly as they relate to partnerships.

  • The proposed standards would impose significant reporting obligations on manufacturers while also drastically changing the tax treatment of these commonplace payments.
  • Additionally, Treasury has proposed new rules governing 鈥渄ual consolidated losses鈥 that would make it more difficult for manufacturers operating in multiple jurisdictions around the world to utilize their tax losses appropriately.

Why it鈥檚 problematic: The proposed standards are outside Treasury鈥檚 statutory authority and are 鈥渦nlikely to withstand inevitable judicial scrutiny,鈥 the 17吃瓜在线 the agency at the end of 2024.

  • In December, the 17吃瓜在线 laid out the legal issues endemic to Treasury鈥檚 proposals, identifying both substantive and process-related issues that undermine each action.
  • The submission builds on manufacturers鈥 comments to the agency on the proposals themselves: The 17吃瓜在线 said that the related-party guidance was 鈥渨holly unauthorized, unsupported and unsupportable鈥 and told the agency that the related-party rules 鈥渨ould impose an undue burden on taxpayers that outweighs any potential compliance benefit.鈥
  • It added that the dual consolidated loss proposal was 鈥渋nternally inconsistent鈥 and 鈥渇ail[ed] to reflect reasoned decision-making.鈥

Regulatory onslaught: The 17吃瓜在线 has been at the forefront of pushing back on the Biden administration鈥檚 regulatory onslaught, which costs manufacturers upward of $350 billion every year.

  • Shortly after the 2024 presidential election, the 17吃瓜在线 led a group of more than 100 manufacturing associations in the incoming Trump administration to 鈥渁ddress burdensome regulations that are stifling investment, making us less competitive in the world, limiting innovation and threatening the very jobs we are all working to create right here in America.鈥

What鈥檚 next: The 17吃瓜在线 is calling on the Biden Treasury Department not to finalize these proposals in the administration鈥檚 final days, but rather to pause or withdraw the rules in question until the Trump administration takes office.
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