“Numbers don’t lie – if Congress does not renew the 2017 Tax Cuts and Jobs Act, Louisiana’s economy will take a catastrophic hit, affecting the state’s job creators, including small business manufacturers,” said Will Green, LABI President & CEO. “Our state is making far too many strides in attracting investment and innovation to face this potentially devastating setback. It is encouraging to see House leadership, including Speaker Mike Johnson and Majority Leader Steve Scalise, prioritize the small businesses that are the backbone of Louisiana communities.”

“The time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward,” said NAM President and CEO Jay Timmons. “Pro-growth tax policies from President Trump’s 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. This data—6 million American jobs at stake—makes crystal clear that preserving tax reform should be one of the first acts of the new Congress and the new administration.”

Key Study Results:

Louisiana economic damage:

·         76,000 lost jobs

·         $6.7 billion reduction in employee compensation

·         $14.9 billion shortfall in U.S. GDP

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 NAM’s 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’s 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’s 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.

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The Louisiana Association of Business and Industry: The Louisiana Association of Business and Industry was organized in 1975 to represent Louisiana businesses, serving as both the state chamber of commerce and state manufacturers association. LABI’s primary goal is to foster a climate for economic growth by championing the principles of the free enterprise system and representing the general interest of the business community through active involvement in the political, legislative, judicial and regulatory processes. Find out more information at labi.org.

The National Association of Manufacturers 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 NAM 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.