During a House Ways and Means Committee hearing at the Reagan Library in July, Rep. David Kustoff (R-TN) asked CEO Of National Association Of Manufacturers Jay Timmons what the impact of the 2017 Tax Cuts and Jobs Act were.
00:00Mr. Kustoff. Thank you Mr. Chairman and thank you to the witnesses for appearing
00:06today and it's a real honor to be here at the Ronald Reagan Presidential Library
00:11and I'm sure you all would agree to that as well being able to testify here and
00:15to my understanding this may be the first congressional hearing ever
00:19conducted at the Ronald Reagan Presidential Library. Mr. Timmons if I
00:24could ask you for a moment you conducted over the last couple of years
00:29I know with with your manufacturers roundtables listening sessions as we
00:35were debating the the expiration of the Tax Cuts and Jobs Act if I can specifically
00:42as it relates to the pass-through or non C Corp manufacturers two questions if I
00:49could one talk about the importance of certainty that the passage of the one
00:56big beautiful bill before the end of December 31 2025 the fact that we did it
01:02in July versus waiting to the end of the year the fact that it may have expired in
01:07toto and then maybe if you can it for some of your member companies or some of the
01:15manufacturers what would that have met if this were if these provisions would
01:22have expired at the end of December 2025. Thank you for that so one of the
01:27conversations that I know the chairman and I had many times was about the
01:33importance of businesses and specifically manufacturers who make major capital
01:39investments their ability to plan into the future and the conversation that I
01:45had with the chairman was and I'm very happy that this bill did pass in July
01:49because had it happened later in the year we probably wouldn't have even have had
01:54the ability to plan for 2026 would have pushed those those strategies out to 2027 so
02:02this has enabled American businesses and American manufacturers to make investment
02:08and hiring plans for for 2026. The second part of your question was oh yeah what was I know what it was
02:18if the bill had not passed we did some we did some we did a study with EY and they came up with the
02:26fact that if the bill had not passed we would have lost 6 million jobs in the American economy
02:31over 1.1 I believe that those would be manufacturing but a half a trillion dollars in wage loss and about
02:381.1 trillion dollars in lost GDP so it was lost opportunity costs that that we were able to overcome
02:47by the passage of this bill and and ensure that we were able to superpower the economy again like we did in 2017
02:56with the initial round of cuts. Thank you Mr. Timmons. Mr. Huff thank you also for for appearing today and you you've talked about your story and how you were able to acquire your company. I also want to ask you about the section 199A the small benefit deduction because you talked about this in your testimony and in your written
03:16testimony if we had not passed this bill and that had expired what would that have meant to you I mean you you talk about you've got some employees who have been with you for 20 years or longer what would the expiration of section 199A have meant to you the small business deduction?
03:38specifically if for for me if it had not been continued and made permanent I would not be able to even consider with my circumstances losing money for the last five years etc to consider doubling the size of my store my best store and hiring employees.
04:02I mean that's your point if you can't expand then you are not hiring employees. Thank you very much.
04:09Mr. Kessler you you talked about a couple of different occasions the raising of the exemption for the for the death tax what that meant to you for a number of cattlemen across the country and I represent a large ag district in Tennessee.
04:27pardon me for saying this like this you can be asset rich and maybe not cash rich.
04:34If the exemption had not been raised what would that have meant for the average cattlemen if he or she had to face the the exact state tax exemptions being lowered back to where they were prior to the enactment of the tax cuts and jobs act.
04:52Well I can't overstate how significant that would have been because of the land values increasing across the whole country let alone especially places like California Colorado New York other places real estate values have increased so much and you've got non ag people that have successful businesses wanting to own a part of America rural America and so they come in and pay over market compared to ag prices and so.
04:55It drives up their real estate values and so.
05:02th.
05:15rural America and so they come in and pay over market compared to AG prices and
05:21so it drives up the real estate values and so to answer your question having
05:28those exemptions lowered is so impactful to the breakup of a lot of family farms
05:38and ranches and it's also bad for the environment I haven't made that point
05:41yet today when you start breaking up and fracturing farms and ranches across this
05:46country that also hurts our environment animal species plant species and that we
05:52don't talk about that part a lot but it's also significant in addition to the
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