Manatee Review

Congressman Vern Buchanan, Vice Chair of the House Ways and Means Committee, and Jay Timmons, president and CEO of the National Association of Manufacturers (NAM), co-authored an op-ed in the Washington Examiner urging Congress to take action to prevent what they describe as a "wave of tax increases set to fall on Americans next year, particularly on the heart of the economy — manufacturers and their workers."

"It will be what some are calling a 'tax Armageddon' because meaningful changes to the tax code made during the 2017 tax reforms will phase out by the end of 2025," Buchanan and Timmons wrote. "If Congress and the White House fail to act, millions of Americans will face higher tax bills, and manufacturers will struggle to create jobs, increase wages, and invest in their local communities."

Buchanan is leading the House Ways and Means American Manufacturing Tax Team alongside Representatives Greg Murphy (R-NC), Jodey Arrington (R-TX), Claudia Tenney (R-NY), and Nicole Malliotakis (R-NY).

The op-ed emphasizes that without legislative intervention, individual tax rates are scheduled to increase at the end of 2025. This change would impact virtually anyone who pays income taxes, including 96% of businesses in America organized as pass-throughs that pay taxes at individual rates.

The authors highlighted that key elements of the 2017 tax reforms have already begun to expire. For instance, businesses can no longer immediately deduct research and development expenses or benefit from favorable incentives for purchasing machinery and equipment.

They noted that these changes could significantly hinder small manufacturers' ability to prosper. The looming expiration could also make it more difficult for manufacturers to compete globally and challenge family-owned businesses' continuity after an owner's death.

Buchanan and Timmons called on elected leaders to prevent this potential "tax Armageddon." They acknowledged steps taken by the House of Representatives but stressed that more needs to be done over the next 18 months.

"Congress’s Manufacturing Tax Team, the National Association of Manufacturers, and manufacturers across the country are working together to make it easier for Americans to grow small businesses, create jobs, increase wages, invest more in their communities, and improve quality of life for everyone," they concluded.

Rep. Vern Buchanan is vice chairman of the House Ways and Means Committee. Jay Timmons is president and CEO of NAM.

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