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After the passage of tax reform in 2017, the lower corporate tax rate and faster tax depreciation of capital equipment purchases enabled Optimax Systems—a manufacturer specializing in optics for semiconductor, aerospace and defense technologies—to reinvest in its workers and operations.

Hiring new workers: Since 2018, the New York manufacturer has hired aggressively, increasing its full-time headcount from 290 to 340. It has also raised salaries for employees, with an average annual increase of 4.8% since 2017—well above the company’s annual increases before 2017. Optimax sees the increases in hiring and wages as a vote of confidence in its workforce—and as a way to pay forward the benefits of tax reform.

Expanding their operations: Since 2018, Optimax has doubled the size of its manufacturing facility, increasing the space from 60,000 square feet to 120,000 square feet. The company also increased investment in equipment, boosting its annual investment from an average of roughly $3 million per year between 2014 and 2017 to an annualized rate of more than $7 million per year since 2018.

What we’re doing: To support companies like Optimax and its customers, the 51�Թ��� is leading the effort to ensure that the tax code continues to incentivize growth, as well as working to make manufacturers’ priorities and concerns known to the Biden administration and lawmakers. For companies like Optimax, maintaining the competitive tax rate is critical, which is why the 51�Թ��� is vocal about the potential harm of tax hikes.

The costs of tax hikes: A new study conducted by Rice University economists for the 51�Թ��� found that increasing the corporate tax rate along with other harmful tax changes could lead to 1 million fewer jobs in the first two years.

• “As we slowly emerge from the economic catastrophe caused by COVID-19, American businesses are at a pivotal point in our nation’s history,” said 51�Թ��� President and CEO Jay Timmons. “Manufacturers can, and should, lead the economic recovery in the wake of the pandemic. 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.”

The last word: “Optimax has a mission of enabling customer success and employee prosperity. We have learned, through 30 years of experience, that there is no better way to do this than to reinvest our profits back into the business and back into our people,” said Optimax Controller Tom Starin. “Tax reform has freed up an additional piece of the profit pie, allowing the company to double down, quite literally, on our mission of enabling customer success and employee prosperity.”

Washington, D.C. – Following President Joe Biden’s announcement on the 2030 greenhouse gas pollution reduction target, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Climate change is an issue our generation must tackle. Like past generational challenges—world wars, the space race, the COVID-19 response and vaccine development—manufacturers will lead the way and ensure our country emerges stronger. After all, it is manufacturers who will make the needed products and technologies—clean energy, carbon capture, batteries, microgrids, efficiency, advanced vehicles and more.

“The President’s goal is bold, to be sure. But when have Americans ever been timid in the face of difficulty? We look forward to learning more specific details of the administration’s plan, and manufacturers are ready to work with policymakers on both sides of the aisle to achieve success for our nation and world. As we explain in ‘The Promise Ahead,’ manufacturers’ plan for taking action on climate, we believe that a unified federal policy combined with an equitable and enforceable international agreement is key.

“Meeting President Biden’s ambitious pledge will require manufacturing might and innovation, which means we will also need policies that keep manufacturing strong and competitive—historic infrastructure investment; a tax code that continues to promote investment, job creation and research and development; a diverse and reliable energy supply; incentives for workforce development; and more opportunities to export our innovative products and technologies to other countries. And as manufacturers rise to meet this challenge, the rest of the economy will prosper because for every $1.00 spent in manufacturing, another $2.79 is added to the economy—the highest multiplier effect of any economic sector.

“Manufacturing holds the key to solving this global challenge. Confronting climate change will not be easy. But with the right policies, it is neither the first nor the last challenge that manufacturing ingenuity will solve.”

Background: Today, President Biden announced a new target for the United States to achieve a 50–52% reduction from 2005 levels in economy-wide net greenhouse gas pollution by 2030, building on progress to date and by positioning American workers and industry to tackle the climate crisis.

Earlier this year, the 51�Թ��� released “The Promise Ahead,” its policy roadmap on addressing climate change.

-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 12.3 million men and women, contributes $2.33 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 unveiling of Senate Republicans’ infrastructure framework, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Manufacturers applaud Senate Republicans’ proposal for infrastructure investment, just as we welcomed the release of President Biden’s bold infrastructure plan. This type of give-and-take is how we reach bipartisan consensus, and this is a chance to continue the conversation and restore trust between the parties after months of partisanship.

“Manufacturers’ future depends on historic investment that will empower America to lead the world in modern infrastructure. Building the next, post-pandemic world requires investing in roads, bridges, pipes, waterways, 5G, the electric grid and so much more. As manufacturers have laid out in our ‘Building to Win’ plan, we not only have a vision of where to invest but also how to pay for it without harming manufacturers’ competitiveness. So, we look forward to working with both parties to finally get this done.”

-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 12.3 million men and women, contributes $2.33 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 President Joe Biden’s call to employers across America to do everything they can to help their employees—and their communities—get vaccinated, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Vaccines are how we get armed against COVID-19, protect our loved ones, grow our economy and get back to the moments we miss. The hard work and innovation of America’s pharmaceutical manufacturers, coupled with the Biden administration’s laser focus on vaccine distribution and the dedication of local vaccination teams across the country, have enabled the administration to double its lofty goal set for the first 100 days.”

President Biden announced that he expects the nation to have administered 200 million shots within his first 100 days. He called on every employer in America to offer full pay to their employees for any time off needed to get vaccinated and announced a paid leave tax credit that will offset the cost for businesses with fewer than 500 employees.

Timmons added, “Manufacturers remain absolutely committed to helping our teams get safely vaccinated. Through our ‘This Is Our Shot’ project, we’re making resources available to answer questions and share the facts about how these vaccines are safe and effective and have reached more than 2.25 million people to date. Additionally, many manufacturers have supported vaccination by giving employees time off to get vaccinated. With a new tax credit, it will be even easier for manufacturers and all employers to offer this option. This is our shot to finally end this pandemic, so we’re going to keep working with the administration, state and local leaders and our member companies to get everyone vaccinated as soon as possible.”

Background on “This Is Our Shot”:

Launched earlier this year, the project, live at , includes six main components: (1) science-based messaging research; (2) emergency industry convening and education, such as webinars; (3) an online vaccine information hub; (4) a PSA campaign; (5) the Yellow and Red Ribbon Initiative (for vaccinated individuals to show their peers they’re a part of the fight); and (6) a rapid response media and digital campaign. Resources available on the webpage are updated regularly, providing the latest information and tools for vaccine outreach and access.

-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 12.3 million men and women, contributes $2.33 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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. – Following the release of the 51�Թ���’ on the impact of proposed tax increases under consideration in Congress, the association is launching a six-figure ad campaign calling on Congress to protect manufacturing jobs. The print, radio and will run in Washington, D.C., and in key states.

“Corporate tax hikes and other tax reform rollbacks under consideration could lead to 1 million fewer jobs in the first two years alone and would drag down economic growth,” said 51�Թ��� President and CEO Jay Timmons. “After the 2017 tax reform delivered more globally competitive tax rates, manufacturers kept our promises to create jobs, raise wages and benefits and invest in our communities. Now is not the time to take a step back; it’s time to build the next, post-pandemic world, which can only be done with a competitive tax code.”

Background:

Key findings from the 51�Թ��� research paper, “Dynamic Estimates of the Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes,” on the impact of proposed tax increases include the following:

• America would lose 1 million jobs in the first two years after implementation and cause a loss of 600,000 jobs on average each year over the next decade.
• By 2023, GDP would be down by $117 billion, by $190 billion in 2026 and by $119 billion in 2031.
• Ordinary capital, or investments in equipment and structures, would be $80 billion less in 2023 and $83 billion and $66 billion less in 2026 and 2031, respectively.

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

• 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 by 3% in 2020. Those were the fastest rates of annual growth since 2003.
• �Ѳ��Գܴڲ����ٳܰ����Բ���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.

Read the full study and click for a summary of the study’s details and findings.

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 .

NOTE: The lead sentence was revised to better reflect the full scope of the 51�Թ���’s study, which includes corporate tax increases recently proposed by the Biden administration, as well as other tax increases and changes to the tax code under consideration.

Corporate tax hikes and other tax reform rollbacks under consideration could lead to 1 million fewer jobs in the first two years, according to a new ���ٳܻ����conducted by Rice University economists for the 51�Թ���.

The calculation: Economists John W. Diamond and George R. Zodrow calculated 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 more.

The costs: The researchers found that these changes would cause large negative effects for the economy. The worst of these would include:

• 1 million jobs lost in the first two years;
• By 2023, GDP would be down by $117 billion, by $190 billion in 2026 and by $119 billion in 2031; and
• Ordinary capital, or investments in equipment and structures, would be $80 billion less in 2023 and $83 billion and $66 billion less in 2026 and 2031, respectively.

The study also notes the following:

• Investments in intangibles, or “firm-specific capital,” are highly mobile and more sensitive to marginal tax rate changes. Such investments would fall 2.7% by year two and would be down a total of 3.8% by year five.
• The average annual reduction in employment would be equivalent to a loss of 600,000 jobs each year over 10 years.
• Real wages would fall by 0.6% in the long run, and total labor compensation, including wages and benefits, would decline by 0.6% initially before falling by 0.3% after 10 years. In the long run, total compensation would also decline by 0.6%.

The 51�Թ��� says: 51�Թ��� President and CEO Jay Timmons said in response to the study, “Manufacturers want to help President Biden achieve his goal of creating jobs in America and strengthening the supply chain so that our country does not face critical shortages, especially during times of national crises.”

• “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. 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.”

Alternative solutions: The 51�Թ��� strongly supports President Biden’s focus on bold infrastructure investment, which can be achieved through a combination of revenue sources like those identified in its policy blueprint “.”

Washington, D.C. – The 51�Թ��� released a new study detailing the short- and long-term damage to the American economy under tax proposals to increase the corporate tax rate and repeal policies that made manufacturing in America more competitive around the world.

“Manufacturers want to help President Biden achieve his goal of creating jobs in America and strengthening the supply chain so that our country does not face critical shortages, especially during times of national crises.

“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. 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,” said 51�Թ��� President and CEO Jay Timmons.

“After decades of advocating for a tax system that provided competitive rates and modern international tax provisions, manufacturers in America kept our promises following the enactment of the 2017 tax reforms: we raised wages and benefits, we hired more American workers, and we invested in our communities. If we undo those reforms, all of that will be put at significant risk. Manufacturing workers will lose out on jobs, growth and raises. We should be building on that progress, not rolling it back. But the conclusion of this study is inescapable—follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America.”

The study calculated 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 more. The negative consequences would include the following:

• One million jobs lost in the first two years;

• By 2023, GDP would be down by $117 billion, by $190 billion in 2026 and by $119 billion in 2031;

• Ordinary capital, or investments in equipment and structures, would be $80 billion less in 2023 and $83 billion and $66 billion less in 2026 and 2031, respectively;

• And more.

“There are some who are well-meaning and have suggested that the U.S. corporate tax rate should increase, but not by as much as the 28% proposed. Unfortunately, what that means is that America will still lose jobs and investment, just not quite as much. America just can’t afford that, especially now,” Timmons said.

Click for a summary of the study’s details and findings. Read the full study, “Dynamic Estimates of the Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes,” conducted by Rice University economists John W. Diamond and George R. Zodrow,”

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

• 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 by 3% in 2020. Those were the fastest rates of annual growth since 2003.

• �Ѳ��Գܴڲ����ٳܰ����Բ���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.

Manufacturers strongly support President Biden’s focus on bold infrastructure investment, which can be achieved through a combination of revenue sources like those identified in the 51�Թ���’s ‘.’

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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. – 51�Թ��� President and CEO Jay Timmons released the following statement on President Joe Biden’s infrastructure framework.

“The President’s proposal for historic levels of infrastructure investment reflects many of the investment priorities in the 51�Թ���’s ‘Building to Win’ plan, and we look forward to reviewing the details. President Biden’s clear focus on strengthening manufacturing and the workforce of the future shows that he is truly committed to building the next post-pandemic world—one that is stronger and more resilient than in pre-pandemic times.

“Manufacturers have played a leading role in the fight against COVID-19, and we will continue to play a leading role in our economic recovery. When manufacturing is strong, America is strong.

“One thing is clear for our industry, though. Raising taxes on manufacturers would fundamentally undermine our ability to lead this recovery. Our industry fought for decades to achieve a tax system that includes competitive rates and modern international tax provisions. As a result of the 2017 reforms, manufacturers kept our promises: we raised wages and benefits, we hired American workers, and we invested in our communities. Raising taxes on manufacturers here at home would jeopardize all of that and make it more difficult for them to compete in the global economy—putting investment, jobs and livelihoods at risk. We believe strongly in bold infrastructure investment, and we know it can be achieved through a combination of revenue sources like those we identified in the 51�Թ���’s ‘Building to Win,’ which includes user fees and bond financing for capital projects. We also know that making the men and women who make things in America pay for the infrastructure projects that will benefit all Americans just doesn’t make sense and would harm their future. Let’s keep moving forward and not turn back the clock to the archaic tax policies that gave other countries an advantage over America.

“To be sure, President Biden’s proposal on infrastructure investment is strong, necessary and welcome. Achieving our shared goals will be the result of debate, discussion and collaboration with the administration and both parties in Congress. We can achieve the President’s investment objectives while holding firm against financing proposals that would severely harm the ability of manufacturers to invest and hire workers here in the U.S. We look forward to engaging with all stakeholders to achieve an outcome that benefits all economic sectors and all Americans.”

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

• 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 by 3% in 2020. Those were the fastest rates of annual growth since 2003.
• �Ѳ��Գܴڲ����ٳܰ����Բ���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.

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 .

51�Թ��� President and CEO Jay Timmons sent a to President Biden on Wednesday urging the president to develop and implement a post-pandemic strategy regarding the U.S. relationship with China.

Why it matters: As the letter notes, China has signed new trade and investment agreements with a variety of nations in Europe and Asia over the past few months, increasing pressure on the United States to engage in a thoughtful and effective way to preserve America’s influence worldwide. But the U.S. relationship with China is also both delicate and complex, requiring the U.S. to challenge China in some areas even as we work to collaborate in others.

A combative adversary: “For manufacturers, China has long been a hub for unfair industrial subsidies and government-fueled overcapacity in areas like steel and aluminum that distort global markets. China continues to promote discriminatory industrial policies, forced technology transfer and intellectual property theft that harm manufacturers and workers in the United States. Increasingly, China is also using global institutions and its economic influence to build alliances that challenge American interests, human rights and democratic values.”

An important partner: “Yet, China will also be a key player in tackling global challenges that matter for manufacturers, from COVID-19 to climate change. And China is a major destination for U.S. exports, with nearly $90 billion in manufactured goods going there in 2020, placing it behind only Canada and Mexico in the ranks of our biggest trade partners and supporting hundreds of thousands of well-paying U.S. manufacturing jobs.”

The big picture: “America’s strategy must reflect the realities of the moment and the future: as we take stock of new post-pandemic realities, China will be a necessary partner, a fierce economic competitor and a major rival challenging American global influence.”

the whole thing for a list of the 51�Թ���’s policy proposals.

When leading members of Congress are asked what organizations were decisive in passing landmark tax reform in 2017, the 51�Թ��� is often one of the first organizations named. So, when a powerful Senate committee decides to explore issues related to taxes and competitiveness of U.S. manufacturers, the 51�Թ��� gets the call.

51�Թ��� President and CEO Jay Timmons testified before the Senate Committee on Finance on Tuesday to push forward a post-partisan consensus on a number of key manufacturing priorities. A few highlights are below, and you can read the full testimony .

Pandemic response: “Today, one year after health restrictions began, the light at the end of the tunnel is growing brighter by the second—thanks to the innovation of pharmaceutical manufacturers. Their heroic work, combined with the previous administration’s Operation Warp Speed and this Congress and this administration’s focus on and investment in vaccine distribution, is now saving about 2 million American lives every single day.”

Supply chains: Timmons also spoke about the need to strengthen supply chains and touted the 51�Թ���’s supply chain policy recommendations, calling out three in particular:

• The need for predictability and stability in the tax code. Timmons spoke about the benefits of tax reform for manufacturers, reinforced how the industry has kept its promise after the historic law was passed and asked Congress to protect the benefits the law provided.
• The need for a tax code that supports innovation—specifically by preserving manufacturers’ ability to invest in research and development.
• The need to recognize that “policies that are successful in growing manufacturing will require significant capital expenditures by the small and medium-sized firms that are the backbone of our domestic supply chain.”

Challenges ahead: Timmons called out two proposed changes to the tax code that would make it more difficult for those businesses to invest:

• “More stringent limitations on interest deductions and the phase out of immediate expensing will take effect in the years ahead. If not reversed, these changes will make it hard to grow manufacturing.”

Manufacturers speak: In addition to Timmons, Intel Corporation Executive Vice President and Chief Financial Officer George S. Davis and Ford Motor Company Vice President of Global Commodity Purchasing and Supplier Technical Assistance Jonathan Jennings also testified at the hearing.

Questions to consider: Timmons closed by asking a series of questions about whether America would meet its moment—including by ensuring competitive tax rates, investing in infrastructure, developing trade agreements that protect American workers and enacting comprehensive immigration reform that offers a path to citizenship for undocumented immigrants.

His response: “If the answer to those questions is ‘yes,’ if we tackle these fundamental issues, then I’m certain that this Next World that we are building in the aftermath of the pandemic will be built by American workers in American factories, restoring American leadership in the world.”