2017's Tax Cuts that grew the U.S. Economy are about to Expire – unless Congress delivers again
By former Cong. John Culberson
WASHINGTON, DC (Texas Insider Report) — A little over seven years ago, a Republican-controlled Congress partnered with President Donald Trump to rewrite the nation’s tax code through the Tax Cuts & Jobs Act of 2017. As a member of the House of Representatives at the time, I was honored to represent the people of Texas' 7th Congressional District and cast a vote in support of President Trump’s tax bill. The legislation spurred a wave of economic growth that benefited workers, businesses, and families.
2017’s Tax Cuts & Jobs Act helped all Americans, but it was particularly impactful for our nation’s manufacturers. - In the first year of the cuts, the manufacturing sector experienced its best year for job creation in 21 years.
- Manufacturing capital spending soared, as manufacturers big and small used the savings from tax relief to grow their businesses.
- Wages grew, and companies boosted investment in their communities nationwide.
Many Americans probably don't realize it, but some important parts of the 2017 Tax Cuts & Reforms that boosted manufacturing have already expired. By the end of the year, all of the tax cuts will sunset. Before that happens, Congress should send a bill that preserves pro-manufacturing tax reforms to the president’s desk.
If Congress fails to extend the 2017 tax cuts, manufacturing companies nationwide will face a devastating tax increase – and the issue is especially critical for Texas.
Texas has a diverse and robust manufacturing economy, and we are home to more than 20,000 manufacturers and 925,000 manufacturing jobs. The sector’s economic output exceeds $269 billion – approximately 11% of the Texas economy.
- READ MORE: Gov. Abbott Lauds Texas’ Manufacturing Industry
- “We are proud that Texas is home to a booming manufacturing sector, and thanks to our strong manufacturing sector, ‘Made in Texas’ has never been a bigger brand,” said Gov. Greg Abbott.
In Texas' 7th Congressional District south and west of Houston, 13,000 jobs are at risk.
Fortunately, Congress is already on the road to protecting these manufacturing jobs and job creators by passing a new round of tax reform. Just last month, both the House and Senate passed the budget blueprints necessary to kick start a new tax bill.In the weeks ahead, Congress should act swiftly to finish the job:
- It must lock in or further reduce Individual and Corporate Tax Rates.
- Congress must renew policies that allow businesses to write off the Cost of New Equipment, and to deduct the interest on loans used to finance Job-Creating Projects & Capital Investments.
- Legislators must also continue to enhance American Competitiveness by ensuring our tax code continues to encourage companies to invest and produce goods in the United States.
In 2017, I was proud to vote with President Trump for a tax bill that grew our economy, brought jobs back to our communities, and unleashed the full power of American manufacturing. Now, as these vital reforms face expiration, it is time for Congress to deliver again with a tax bill that protects our manufacturing sector – and unlocks a new round of prosperity across the nation's economy.
The health of our nation’s manufacturing sector depends on it.
Former Congressman John Culberson represented the West Houston & Harris County-based 7th Congressional District of Texas from 2001 to 2019. He held key Republican leadership positions in Congress, while serving on the powerful House Appropriations Committee and various House Transportation Committees.
