My weekly column: Unleashing Iowa manufacturing with President Trump’s tax cuts
In October, our country celebrates Manufacturing Month and recognizes the critical importance of manufacturing to our economy. Domestic manufacturing supports good-paying jobs in our communities, strengthens our supply chains, and helps reduce our dependence on foreign nations for the goods and products that Iowans need and rely on. During this month, we also honor Iowa workers in the manufacturing sector who keep our economy moving and make invaluable contributions to our communities.
In the great state of Iowa, manufacturing is incredibly important to our economy. Our state has the highest concentration of machinery manufacturing employees in the U.S. Anyone who has driven on Highway 18 through Rock Valley has seen this firsthand. In fact, according to the Iowa Economic Development and Finance Authority, the industry accounts for 17% of the GDP, contributing $35 billion annually. In March, I had the chance to tour one of our own local manufacturers in George, Sudenga Industries, which manufactures grain, feed, and seed handling equipment. We discussed how investments in local manufacturing keep our main streets strong and bring good-paying jobs to our rural communities all while strengthening local economies.
Ensuring our manufacturers have the resources to flourish is so important. That’s why I voted for President Trump’s Working Families Tax Cuts, which delivered the largest investment in domestic manufacturing in history. Serving on the House Ways and Means Committee, I worked to ensure that this legislation brings American manufacturing back home, strengthens supply chains, and boosts investment in our communities. We also eliminated taxes on overtime, which will help fill the nearly two million jobs that could be vacant in just five years according to the National Association of Manufacturers.
To remain competitive in global markets, our manufacturing firms must remain on the cutting edge of innovation. New provisions like revitalized R&D expensing to allow firms to reinvest into new machinery, software, and their employees will be a gamechanger for our economy. The National Association of Manufacturers further estimates that this provision could provide $284 billion in economic growth in the next four years.
To keep grow manufacturing in the U.S., my colleagues and I included a provision to offer 100% immediate expensing for new manufacturing plants and agricultural facilities, encouraging job creators and farmers to immediately invest dollars into their operations and hire new employees. In conjunction with President Trump’s reduction of regulatory red tape, this provision will start an American manufacturing boom and grow our economy.
Additionally, this legislation would make permanent the qualified business income deduction at 20%, help reduce burdensome red tape for small and midsize manufacturers, and double immediate small-business expensing to $2.5 million. This is an incredible opportunity for Iowa manufacturers to expand and grow.
In Congress, I will continue to work for our manufacturers to create real, effective policy solutions and support Iowa manufacturing dominance.