NAM: Economic Risks If Tax Provisions Are Allowed to Expire

A recent National Association of Manufacturers study warns that expiring tax provisions could lead to significant manufacturing job losses.

The study's findings suggest that the expiration of these provisions could have significant effects, not only on the manufacturing sector but also on the broader U.S. economy.
The study's findings suggest that the expiration of these provisions could have significant effects, not only on the manufacturing sector but also on the broader U.S. economy.
Photo courtesy of NAM

A recent study by Ernst & Young for the National Association of Manufacturers (NAM) underscores the potential economic consequences if Congress fails to renew key tax provisions from the 2017 Tax Cuts and Jobs Act. The study projects that nearly 6 million jobs could be lost, with the manufacturing sector facing significant challenges.

The study highlights that the expiration of these tax provisions could result in a $1.1 trillion reduction in U.S. GDP and a loss of approximately $540 billion in employee compensation. The manufacturing industry would bear a substantial portion of this impact, with over 1.1 million manufacturing jobs and $126 billion in wages at risk.

NAM President and CEO Jay Timmons emphasized the importance of the 2017 tax reforms, describing them as instrumental in enhancing the competitiveness of the U.S. economy on a global scale. He urged Congress to act swiftly to prevent economic setbacks and ensure continued growth in the manufacturing sector.