Economic Impacts of Expiring Tax Policies on Manufacturing

This report is a technical analysis of the economic impacts resulting from the expiration of tax policies that encourage manufacturing in the United States. It outlines the changes brought about by the Tax Cuts and Jobs Act (TCJA) enacted in 2017, which aimed to enhance domestic economic growth. The report details nine specific tax provisions that are set to expire or phase out, affecting corporate taxation and individual income tax rates. The analysis estimates the potential disruption to economic activity, projecting significant job losses, decreased employee compensation, and a reduction in GDP. It highlights that the expiration of these policies could jeopardize approximately 5.9 million jobs and $1.1 trillion in GDP. The report also discusses the macroeconomic impacts, indicating a potential reduction in employment levels and GDP over the coming years due to changes in taxpayer behavior in response to increased tax liabilities. The findings underscore the importance of these tax provisions in sustaining economic activity in the manufacturing sector.