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The 17�Թ�����’s 2025 tax campaign, “,” is focused on preserving tax provisions critical to manufacturing in the U.S. One of those is the corporate tax rate, which the 2017 tax reform lowered from 35% to a globally competitive 21%.

The 17�Թ����� recently released a on the current corporate rate, emphasizing why it’s crucial to U.S. manufacturing’s competitiveness on the world stage.

The background: Prior to 2017, the U.S. corporate tax rate was 35%, the highest among our peers in the Organisation for Economic Co-operation and Development and the third-highest rate in the entire world—making the U.S. an outlier and harming its ability to attract manufacturing investment.

• Tax reform lowered the corporate rate to 21%, aligning the U.S. with the average rate elsewhere in the OECD.

The benefits: Reducing the tax burden on manufacturers led to increased investment throughout the U.S., job creation, wage growth and overall economic expansion.

• In 2018, the year the lower rate took effect, manufacturers had their best year for job creation in more than two decades, creating more than 260,000 positions and increasing wages by 3%—the fastest pace in 15 years.
• 17�Թ����� surveys conducted prior to tax reform found that nearly 80% of manufacturers were struggling with unfavorable business conditions like high taxes—a figure that dropped to just 12% following the reduction in the corporate rate.

What’s at stake: Although the corporate tax rate is not set to expire at the end of 2025, as other pro-growth provisions are, President Biden’s fiscal year 2025 budget called for an increase to 28%.

• This proposal would return the U.S. to one of the highest corporate tax rates in the developed world, resulting in fewer jobs, lower wages, less innovation and reduced investment in our communities.

What should be done: “Manufacturers are calling on Congress to preserve tax reform in its entirety—including the 21% corporate tax rate,” the 17�Թ����� said.

• “Congress should maintain a globally competitive corporate rate—enabling manufacturers to continue leading on the world stage while driving innovation and job creation here at home.”