Date: April 9, 2021
Contacts: mobrien@nam.org, kcrow@vamanufacturers.com

Congress Considering Tax Hikes That Would Cost 1 Million Jobs

RICHMOND, VA – Study finds that tax increases under consideration in Congress would cost 1
million jobs two years following their implementation. The study conducted by the NAM, in
partnership with Rice University economists John W. Diamond and George R. Zodrow, also
found that repealing tax reform would reduce capital investment and lower wages and
compensation in the long run, while undermining the economic recovery from COVID-19.
Find the complete study here — http://www.nam.org/ProtectMFGJobs.
“As we slowly emerge from the economic catastrophe caused by COVID-19, American
businesses are at a pivotal point in our nation’s history. Manufacturers can, and should, lead the
economic recovery in the wake of the pandemic,” said NAM President and CEO Jay
Timmons. “But this study tells us quantitatively what manufacturers from coast to coast will tell
you qualitatively: increasing the tax burden on companies in America means fewer American
jobs. One million jobs would be lost in the first two years, to be exact.”
The study was conducted in response to talk of reversing portions of the 2017 Tax Cuts and
Jobs Act. That legislation, which was supported by manufacturers and organizations across the
business community, was like rocket fuel for manufacturers in the U.S., prompting companies to
create jobs, increase wages and benefits and invest in local communities. In 2018,
manufacturers created 263,000 jobs and increased wages by 3% — the best year for job
creation in two decades. Manufacturing wages also went up 2.8% in 2019 and 3% in 2020.
Manufacturing capital spending also grew by 4.5% and 5.7% in 2018 and 2019, respectively.
As lawmakers consider action to put at risk those gains, the VMA and NAM are mobilizing small
business leaders and industry allies to secure the tax reform gains. The NAM has developed a
tool for companies to share with their workforce and supply-base to tell Congress why they
should not undo the 2017 Tax Cuts and Jobs Act.
“It should be absolutely clear to every member of Congress that competitive corporate tax rates
create US manufacturing jobs,” said VMA President and CEO Brett Vassey. “These aspirational
global corporate tax rate proposals only prove that their supporters will sacrifice US
manufacturing jobs and settle for mediocre growth.”

About Virginia Manufacturers Association
The Virginia Manufacturers Association develops and advocates for constructive public policies and supports a broad array of
business services and programs to help ensure that Virginia manufacturing companies can be productive, profitable, and
competitive in Virginia. Virginia’s 6,000+ manufacturers employ over 230,000 individuals, contribute $47 billion to the gross state
product, and account for over 80% of the state’s exports to the global economy. For more about the VMA, please visit
www.vamanufacturers.co