Study: Federal Tax Hikes Could Cost 1 Million U.S. Jobs

The Biden administration’s proposed tax increases — offered as part of the president’s infrastructure plan — could lead to a million fewer jobs in the first two years, according to a new study conducted for the National Association of Manufacturers (NAM). According to the study, the effects of increasing the corporate tax rate to 28%, increasing the top marginal tax rate, repealing the 20% pass-through deduction, eliminating certain expensing provisions, and other efforts to repeal federal tax reform would have large negative effects for the economy, including driving down U.S. GDP by $117 billion by 2023.

Last week, NAM President and CEO Jay Timmons issued a statement warning that “raising taxes on manufacturers would fundamentally undermine our ability to lead this recovery.” Timmons said manufacturers fought for decades to achieve a tax system that includes competitive rates and modern international tax provisions — and that as a result of the 2017 reforms, manufacturers raised wages and benefits, created more jobs, and invested in communities.

The NAM has created this action tool and talking points so OMA members can contact members of Congress to share the findings of the study. 4/8/2021