202-224-4515, Julia Lawless and Katie Niederee
Tax Reform Helps U.S. Manufacturers Compete
Tax Overhaul is Creating Jobs, Boosting Wages in Manufacturing
President Trump today is touring H&K Equipment, Inc., in Pittsburgh, Pa., to see firsthand the effect tax reform is having on U.S. manufacturers.
Critical reforms like an internationally competitive corporate tax rate, territorial international system, rate reductions and improvements for small businesses, among others, will lead to new jobs, higher wages and increased investment in American manufacturing.
“President Trump and Congress have delivered on their promise to pass tax reform that will empower manufacturers to create jobs, improve the quality of life and build more in America,” said Jay Timmons, president of the National Association of Manufacturers (NAM). “Now manufacturers will deliver. Throughout this debate, we said we will hire more workers, create more well-paying jobs, invest more in America and raise wages. We’ve been given license to compete more fiercely in the global economy, and we are going to ensure that we lift up more working families.”
A NAM member survey supports this notion. In NAM’s last Manufacturers’ Outlook Survey, 63 percent of respondents said they would spend more on facilities and equipment, 58 percent said they would expand their business, 54 percent said they would hire more workers and 49 percent planned to boost wages and benefits.
Take a look at provisions in tax reform that will benefit manufacturers:
Reduces the corporate tax rate from 35 to 21 percent, putting the United States on par with its global competitors;
Switches to a territorial tax system;
Repeals the corporate alternative minimum tax (AMT);
Provides relief for small businesses structured as pass-through entities, which levels the playing field for smaller manufacturers;
Encourages capital investment through immediate expensing of certain capital expenditures; and
Creates a deduction for foreign-derived intangible income, which will benefit high-value manufacturers.
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