Failure To Extend Federal Tax Reductions Would Harm The Metals And Manufacturing Industries

As Connecting the Dots previously reported, the U.S. Congress has been facing a decision about whether to extend several expired federal tax policies that affect the industrial metals and manufacturing industries. In 2025, additional tax policies will expire, and if Congress does not stop these impending tax increases, the industrial metals industry, manufacturers, and the larger U.S. economy will suffer — badly, according to findings from the National Association of Manufacturers’ (NAM) Second Quarter 2024 Outlook Survey.

One of the chief takeaways from that survey is that 73 percent of manufacturers said congressional failure to stop the tax increases would limit their capital investment opportunities.

Members of industry are not the only ones concerned about the impact of higher taxes. According to a new survey from the U.S. Chamber of Commerce, a majority of U.S. voters are worried that higher taxes would result in higher prices. Additionally, they believe families and businesses already pay enough in taxes. Read that survey here.

As a reminder, before the U.S. Senate right now is a piece of legislation that would:

• Restore immediate research and development (R&D) expensing;
• Return to a pro-growth interest deductibility standard; and
• Reinstate full expensing, also known as 100 percent accelerated depreciation, for businesses’ capital investments.

This tax relief is retroactive, stretching back to tax years starting in 2022, meaning many businesses would be able to claw back some taxes levied in prior years if the bill is signed into law.

MSCI asks that its member company leaders and employees make their voices heard on this matter. Interested individuals can use the resources at NAM’s Tax Action Center, available at this link, to get in touch with their representatives in Washington, D.C. to ask that they support the legislation and press their party leaders to bring it up for a vote.