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The proposed “book tax” in the Senate’s reconciliation bill “would overwhelmingly hit U.S. manufacturers,” according to a new by the Joint Committee on Taxation, Congress’s non-partisan tax scorekeeper.

What’s going on: The reconciliation bill, the outline of which was released Wednesday by Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WVA), proposes a 15% minimum corporate levy, or “book tax,” on certain companies.

• The provision is estimated to raise $313 billion, and JCT finds that manufacturers would be responsible for paying nearly half of it.

What it means: The impact would be swift and devastating to manufacturers and the economy as a whole, said 51�Թ��� Chief Economist Chad Moutray, who conducted his own analysis of the bill’s effects on the manufacturing sector.

Including direct, indirect and induced effects, in 2023 alone the impact would include:

• A real GDP reduction of $68.45 billion
• 218,108 fewer workers in the overall economy
• A labor-income decrease of $17.11 billion

Targeting manufacturers: “‘This is a domestic manufacturing tax, plain and simple,’” said Senate Finance Committee Ranking Member Mike Crapo (R-ID), who asked for the JCT analysis.

• “Despite Democrats’ claims, the book minimum tax does not close tax loopholes. Treatment of capital investments, like those made by American manufacturers, differ for book and tax purposes—for good reason,” according to a press release from Senate Finance Republicans.
• “Congress intentionally designed tax depreciation rules to support domestic investment. Democrats’ tax on U.S. manufacturing would eliminate that benefit.”

Washington, D.C. – Following the House’s passage of the CHIPS-Plus Act, 51�Թ��� President and CEO Jay Timmons released the following statement:

“This legislation is a bold, important step toward ramping up the domestic manufacturing of essential inputs used by virtually every part of our industry. Every vote for the CHIPS-Plus Act was a vote for a more competitive manufacturing industry in America. This bipartisan legislation shows that Congress is taking the problems of supply chain disruptions and inflation seriously. Every manufacturer will benefit. But there is more to be done.

“Once President Biden signs it into law, manufacturers will work with lawmakers to build on the momentum and continue our advocacy for important measures that did not make it into the final CHIPS-Plus legislation, including trade measures, anti-counterfeiting protections and other workforce development priorities.

“But if lawmakers are truly serious about competing with China, they will now oppose the tax increases and attacks on pharmaceutical innovation in the latest reconciliation bill proposal, which will certainly lead to continued inflationary pressures. Congress should stay focused on bipartisan solutions, not legislation that weakens our economy and makes us less competitive with other countries.”

-51�Թ���-

The 51�Թ��� 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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org

Washington, D.C. – Following news of a potential reconciliation agreement among Senate Democrats, 51�Թ��� President and CEO Jay Timmons released the following statement:

“This proposal is nothing more than a repackaging of the same bad ideas with a new name slapped on it. It is especially harmful because it will undermine manufacturers’ competitiveness at a time when the industry is reeling from supply chain disruptions and record inflation. Manufacturers kept our promises after the 2017 tax reforms, hiring more workers, investing in our communities and raising wages and benefits. Raising taxes now will hurt manufacturers’ ability to keep delivering for our people and mean fewer opportunities for Americans already worried about their financial future.

“Government price controls on pharmaceutical manufacturers are no less destructive. They will weaken our ongoing work to develop lifesaving cures to complex diseases like cancer and Alzheimer’s and harm our responses to health crises. It’s bad for Americans’ health. It’s wrong for our economy.

“While the language purportedly calls for comprehensive permitting reform to be passed by the end of the fiscal year, there is nothing that prohibits Congress from doing exactly that right now. Any member of Congress who is voting for the bill based solely on that language should not do so and should instead push to have a standalone bill considered.

“Lawmakers who support manufacturing in America should oppose this reconciliation bill. It will make manufacturing less competitive and America economically weaker.”

-51�Թ���-

The 51�Թ��� 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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the Senate’s passage of the CHIPS-Plus Act, 51�Թ��� President and CEO Jay Timmons released the following statement:

“The CHIPS-Plus Act will deliver a powerful boost to manufacturers’ competitiveness. Manufacturers across all sectors rely on access to chips, so this bill will help strengthen American supply chains thanks to its investments in domestic semiconductor production—as well as its funding for programs to support the STEM workforce, advanced technology development, excavation of critical minerals, clean energy and more. Manufacturers have worked with lawmakers for more than a year to advance many provisions of this bill, and we urge the House to pass it as quickly as possible and get it to President Biden’s desk.

“CHIPS-Plus should only be the beginning, however. We will continue advocating policies needed to beat back economic headwinds such as inflation and supply chain disruption. And we will work with Congress to move quickly on policies from the U.S. Innovation and Competition Act and the America COMPETES Act that were left out of CHIPS-Plus, such as anti-counterfeiting measures, important trade provisions and further investments in supply chain resilience and workforce development.

“It’s encouraging to see this Congress once again come together in a bipartisan way to make critical investments in our industry’s competitiveness and our country’s future. Manufacturers look forward to building on this progress. This and future China competition legislation will help us to innovate, create jobs, expand domestic operations and grow the U.S. economy for years to come.”

-51�Թ���-

The 51�Թ��� 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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit

Washington, D.C. – The 51�Թ��� has launched a six-figure broadcast and cable television advertising campaign ahead of a potential reconciliation bill that threatens manufacturing innovation and competitiveness. The campaign calls on senators to oppose government price controls that would undermine the development of lifesaving medicines and the livelihoods of manufacturing workers across America who deliver them.

“Government price-setting schemes that undermine our ongoing work to develop lifesaving cures to diseases like cancer and Alzheimer’s and respond to health crises are never the answer,” said 51�Թ��� President and CEO Jay Timmons. “At a time when manufacturers are already facing extraordinary economic pressures, the Senate should be focused on bolstering our industry’s competitiveness, not undermining it. We are calling on senators to vote ‘no’ on reconciliation and stand with manufacturers and the hardworking Americans who are integral to battling this pandemic and discovering future cures.”

To view the latest television ad, click .

-51�Թ���-

The 51�Թ��� 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 more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit .

Washington, D.C. – Amid historic supply chain challenges and inflationary pressures, along with increasing energy costs, the 51�Թ��� is launching a six-figure ad campaign calling on Congress to protect manufacturing jobs by opposing new taxes on the industry, including those meant to punish the very energy manufacturers that are being asked to produce more. The print, radio and will run in Washington, D.C., and in key states across the country.

“Manufacturers have kept our promises—especially after the 2017 tax reforms—to create jobs, raise wages and benefits and invest in our communities. To keep up this winning record, we need Congress to enact policies consistent with our manufacturing competitiveness agenda. That’s how we’ll strengthen supply chains, expand access to affordable, reliable energy and tamp down inflation. Our industry is ready to keep solving problems and create well-paying jobs—but returning to outdated tax policies will impede our progress,” said 51�Թ��� President and CEO Jay Timmons.

Background on manufacturing growth following the enactment of tax reform in 2017:

• In 2018,��manufacturers added 260,000 new jobs. That was the best year for job creation in manufacturing in 21 years.
• In 2018,��manufacturing wages increased 3.1% and continued going up—by 2.9% in 2019 and 3.0% in 2020. Those were the fastest rates of annual growth since 2003.
• �Ѳ��Գܴڲ����ٳܰ����Բ���capital spending grew��4.5% and 5.7% in 2018 and 2019, respectively.
• Overall, manufacturing production grew 3.2% in 2018, the best since 2010.

The 51�Թ��� has published research on the impact of rolling back tax reform (study available and click for a summary of the study’s findings) and increasing the U.S. Global Intangible Low-Taxed Income (GILTI) tax burden (study available here).

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The 51�Թ��� 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 more than 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released this statement on the retirement of American Bakers Association’s longtime President and CEO Robb MacKie.

“Manufacturing in America today is stronger thanks to the exemplary leadership of Robb MacKie. For nearly two decades, I’ve known Robb as a true friend and a source of wise counsel. Through the years, I’ve learned from him and regularly drawn inspiration from his passion for manufacturing. He chaired the 51�Թ���’s Council of Manufacturing Associations during an incredibly consequential time—as our industry navigated and responded to the COVID-19 pandemic, social unrest and threats to our democracy. He poured his heart and energy into our cause, just as he always has at the ABA, and he has strengthened the association community with his years of leadership and advocacy for the industry. Throughout his association career, Robb has demonstrated an unshakeable dedication to the principles that have made America exceptional—free enterprise, competitiveness, individual liberty and equal opportunity—and has always worked to uphold those values through his tenure at ABA and his service on the CMA.

“The business association community will sorely miss working closely with Robb. We’re losing an important voice as he steps down. The 51�Թ��� and his many friends and colleagues in the CMA are fortunate to have benefitted from his vision, support and leadership, and it is with a sense of deep gratitude that we wish him and his family nothing but the best.”

-51�Թ���-

The 51�Թ��� 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 more than 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the release of an analysis­­­ on the damaging effects of a proposed interest expense limitation under consideration by Congress, 51�Թ��� Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement.

“Manufacturers are already facing incredible economic headwinds due to increased input costs, labor shortages and strong inflationary pressures. This analysis shows that limiting tax deductions for interest on business loans disproportionately harm manufacturers at a perilous time—costing hundreds of thousands of jobs and billions of dollars in economic growth at a time when our industry is trying to drive our nation’s recovery.

“When Congress passed the Tax Cuts and Jobs Act, manufacturers raised wages, invested in U.S. operations and spurred growth. Congress should be considering proposals that double down on the TCJA’s winning record rather than considering tax increases that will sabotage our recovery.”

The analysis was prepared by EY’s Quantitative Economics and Statistics group.

��Key Findings:

The EBIT-based 163(j) and proposed163(n) interest expense limitations before market adjustments would cost:

• 623,000 Jobs
• $31.6 Billion in Employee Compensation Annually
• $60.1 billion in GDP Annually

-51�Թ���-

The 51�Թ��� 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 more than 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the Biden administration’s announcement on the launch of the Indo-Pacific Economic Framework for Prosperity, 51�Թ��� Vice President of International Economic Affairs Ken Monahan released the following statement:

“51�Թ��� President and CEO Jay Timmons pressed the administration on critical components to the IPEF earlier this year, and manufacturers are encouraged that the framework will address key manufacturing priorities we have outlined in areas such as digital economy, resilient supply chains and transparency and good governance. These priorities are essential for manufacturing businesses and workers for a region that represents more than two-fifths of total U.S. manufacturing trade and is a market for U.S. exports that support nearly 2 million American jobs.

“As discussions continue, we’re looking for U.S. leaders to support manufacturing jobs by taking an approach that opens markets, strengthens U.S. innovation and technology leadership, raises global standards and establishes best-in-class trade rules.”

Background: 51�Թ��� President and CEO Jay Timmons stressed in a to senior administration officials that high-standards trade with the Indo-Pacific is critical to manufacturers’ success and global competitiveness. Additionally, the 51�Թ��� submitted on the IPEF in April to the Office of the U.S. Trade Representative.

-51�Թ���-

The 51�Թ��� 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 more than 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the release of a proposed rule by the U.S. Securities and Exchange Commission on climate disclosures, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Manufacturers support key disclosures related to publicly traded companies’ climate strategies, as this information can help shareholders make informed decisions. However, broad, sweeping disclosures could be counterproductive—requiring manufacturers to waste time and resources reporting irrelevant information that will not be decision-useful for shareholders. The SEC should focus on requiring disclosure of material information, and the 51�Թ��� looks forward to working with the SEC to ensure that its proposed climate reporting rule enables smart, company-specific disclosures that are tailored and targeted.

“Manufacturers are proudly leading on climate solutions. After all, it is manufacturers that make the products and technologies needed to face this generational challenge—clean energy, carbon capture, batteries, microgrids, advanced vehicles and more. And through our policy proposal, “The Promise Ahead,” the 51�Թ��� has offered lawmakers a guide for achieving climate solutions alongside economic growth. Especially at this time of global turbulence and supply chain disruptions, our actions must allow for an all-of-the-above approach to safeguarding America’s energy security.”

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The 51�Թ��� 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 more than 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 58% of private-sector research and development. The 51�Թ��� 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 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.