Weekly Column: A Manufacturing Boom Fueled By Tax Code Permanence

Making America great again requires making things in America again, and Idaho is playing an important role in America’s manufacturing renaissance. Our state is home to Micron, one of the world’s most valuable manufacturing and technology firms. Alongside Micron are thousands of other firms that make advanced manufacturing Idaho’s third-largest industry, responsible for over 70,000 jobs and over $12 billion in gross domestic product (GDP) in 2023. As Chairman of the U.S. Senate Finance Committee, which oversees federal tax policy, I frequently meet with manufacturers and small business owners. Their concerns vary, but one message remains consistent: businesses want certainty in our tax code. Investing in new equipment and facilities allows them to expand operations and create good-paying jobs, but doing so is expensive and takes time to plan. When they have stability in the tax code—and when it actively supports growth—they can make those plans with much more confidence. My Republican colleagues and I addressed those concerns through the enactment of the Working Families Tax Cuts, pairing significant new individual tax relief with permanent policies that are spurring economic growth. Businesses can fully expense new machinery and equipment and immediately deduct domestic research and development expenses. The 20 percent small business deduction is now permanent, and the cap on the business interest deduction is increased. Opportunity Zones permanently offer extra incentives for investment in rural areas. And international tax reforms ensure our tax regime stays globally competitive while encouraging domestic investment. The National Association of Manufacturers (NAM) recently released a report detailing the effects of these policies on companies across the country. One of the stories it shared was that of Western Trailers, a Boise-based business that makes custom lightweight trailers for agricultural and commercial use. According to company president Clint Whitehead, Western Trailers has “more than 20 acres planned for future expansions in Fruitland, Idaho. Immediate expensing of both equipment and production facilities lowers the costs of those investments, supporting our ability to continue to invest and create jobs in the community we’ve operated in for more than 50 years.” Western Trailers is not the only company experiencing these benefits. Alongside the dozens of success stories NAM collected, it provided estimates of the overall impact of the Working Families Tax Cuts on the manufacturing sector. NAM’s figures show the law protects 33,000 jobs and will save $6 billion in GDP in Idaho alone. Business growth is also reflected in investment statistics. According to the U.S. Bureau of Economic Analysis, private-sector research and development has risen since the law took effect, as has business investment in equipment overall and industrial equipment specifically. Just as the law provides the conditions for job creators to succeed, it also ensures people keep more of what they earn. More than 127 million taxpayers received a tax cut from the permanently doubled standard deduction, and permanently lowered tax rates are benefiting nearly all filers. In addition, the “no tax on overtime” provision ensures workers who put in extra hours to keep a production line open or get a shipment out on time retain more of the fruits of their hard work. Idaho’s manufacturing sector and the workers who keep it running are central to our state’s economic success. Idahoans can be proud that from food products to cutting-edge microchips, we make the products the world uses every day. With permanent tax policy inspiring business confidence, this record of success shows no signs of slowing. # # #