The New Mexico Business Coalition (“NMBC”) issued a press release today (1/14/2025) expressing concern that 29,000 New Mexico jobs could be lost if the U.S. Congress does not act swiftly and extend the 2017 Trump Tax reforms. The press release follows:
Press Release – Release Immediately
PO Box 95735, ABQ, NM 87199
(505) 836-4223, FAX (505) 836-4522
Contact: Carla Sonntag, (505) 836-4223
29,000 New Mexico Jobs Will Be Lost Unless
Congress Renews the Trump Tax Reforms
New Study Released by the NAM Highlights Costs of
Increased Taxes to New Mexico Manufacturers
Albuquerque (January 14, 2025) – Failing to preserve pro-manufacturing tax policies from the 2017 tax reform will cost the New Mexico economy 29,000 jobs, according to a landmark EY study released by the National Association of Manufacturers. Inaction would cost the entire U.S. economy nearly 6 million jobs and more than $1 trillion in U.S. GDP. The study also shows that the manufacturing industry will bear the brunt of this economic damage if Congress does not act swiftly in 2025.
“New Mexico must safeguard every job it has – especially the better paying jobs in the manufacturing sector,” said New Mexico Business Coalition President and CEO, Carla Sonntag. “With the current net outmigration from New Mexico, we cannot afford to experience such a catastrophic loss of employment in the state as would be produced if these tax reforms are allowed to expire. We urge Congress to act swiftly and make this a top priority for 2025.”
“The time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward,” said NAM President and CEO Jay Timmons. “Pro-growth tax policies from President Trump’s 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale. This data—6 million American jobs at stake—makes crystal clear that preserving tax reform should be one of the first acts of the new Congress and the new administration.”
Key Study Results:
New Mexico economic damage:
- 29,000 lost jobs
- $2.6 Billion reduction in employee compensation
- $5.4 Billion shortfall in U.S. GDP
Nationwide economic damage:
- 5.9 million lost jobs
- $540 billion reduction in employee compensation
- $1.1 trillion shortfall in U.S. GDP
Manufacturing Impact:
- 1.137 million manufacturing jobs
- $126 billion in manufacturing worker compensation
- $284 billion manufacturing GDP reduction
To view the study, including state and district impacts, click here.
Background:
Manufacturers need Congress to prevent harmful tax increases, according to the NAM’s Q3 2024 Outlook Survey. Nearly 9 out of 10 respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers. The 20% pass-through deduction, individual tax rates and the estate tax exemption threshold are scheduled to expire or become less competitive at the end of 2025, as are important aspects of tax reform’s international tax system. These tax increases will build on damaging tax changes impacting R&D, capital investments and business loans that took effect in 2022 and 2023.
In 2018, the first year after tax reform’s enactment, manufacturing experienced the best year for job creation in 21 years and the best year for wage growth in 15 years; similarly, manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively. Manufacturers have used the savings from tax reform to grow their businesses, create jobs, raise wages, add new benefits for employees, fund R&D, purchase new equipment, expand their facilities and invest in their communities. When manufacturing grows, the economy grows. Correspondingly, when manufacturers experience devastating tax increases, the economy suffers.
-New Mexico Business Coalition-
The New Mexico Business Coalition (NMBC) is a statewide nonpartisan, pro-business organization and state affiliate for the National Association of Manufacturing (NAM).
Manufacturing employs more than 30,000 men and women in NM, paying over $4 billion in employee wages and accounts for over 4% of the total output in the state. NMBC is a strong voice for positive business policy representing small and large companies from all industries. Our advocacy focuses on building a robust private sector economy, less government dependence and improving the quality of life for all New Mexicans. For more information, visit our website at www.nmbc.biz.
-NAM-
The National Association of Manufacturers 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 nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM 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 NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
New Mexico Business Coalition (NMBC) is a statewide nonpartisan, probusiness organization and state affiliate for the National Association of Manufacturing. NMBC focuses on improving the business environment for companies and the quality of life for all New Mexicans. For more information, please visit our website at nmbizcoalition.org. Download a copy of this press release HERE.