NAM: Manufacturers oppose tax hikes
September 9, 2021- The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the third quarter of 2021, showing manufacturers remain mostly optimistic in their economic outlook (87.5%, down from 90.1% in Q2). Manufacturers also indicated the many ways that proposed tax increases threaten jobs, investment, and growth in the sector.
The NAM is launching a six-figure ad campaign calling on Congress to protect manufacturing jobs by opposing tax increases in the budget resolution. The print, radio and digital ads will run in Washington, D.C., and in key states across the country
This survey delivers an urgent warning for lawmakers: "if you raise taxes on manufacturers, there will be no avoiding widespread job losses, slower growth and wage stagnation,” said NAM President and CEO Jay Timmons.
With a record 889,000 open jobs in manufacturing and 4 million to fill by 2030, this is the largest campaign ever to build the workforce of tomorrow and inspire, educate and empower a new generation of manufacturers in America.”
Other survey highlights:
Nearly 94% of manufacturers said that higher taxes would be harmful to their businesses.
Roughly 90% of respondents said that their company would find it more difficult to expand their workforce, invest in new equipment or expand facilities if the tax burden on income from manufacturing activities increased.
Nearly 91% said that higher taxes would also make it more difficult to raise employee wages.
The top three challenges facing manufacturers are increased raw material costs (86.4%), attracting and retaining a quality workforce (80.0%) and supply chain challenges (79.8%).
Respondents predicted employment and wage growth to rise at the fastest rates in the survey’s 24-year history.
Background on manufacturing growth following the enactment of 2017 tax reform:
In 2018, manufacturers added 263,000 new jobs. That was the best year for job creation in manufacturing in 21 years.
In 2018, manufacturing wages increased 3% and continued going up—by 2.8% in 2019 and 3% in 2020. Those were the fastest rates of annual growth since 2003.
Manufacturing capital spending grew by 4.5% and 5.7% in 2018 and 2019, respectively.
Overall, manufacturing production grew 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008.