NAM recently spoke with Rep. Carol Miller (R-WV), head of the House Budget Committee’s Supply Chain Tax Team, about how raising the corporate tax would “devastate” manufacturing companies and what she and her congressional colleagues are doing to maintain the current tax rate.

NAME: Representative Miller, Congress is facing a “tax Armageddon” next year as key provisions of the Tax Cuts and Jobs Act of 2017 expire. As leader of the Finance Committee’s Supply Chain Tax Team, what are you focused on for the next debate?

Mueller: In all my meetings with Fortune 500 companies, small businesses and stakeholders, it is clear that the corporate tax rate is a top priority for everyone. We are all concerned that if the corporate tax rate is increased from 21%, consumers will be the ones most affected by the rising prices of everyday goods and services. I know that for capital-intensive industries like mining, a uniform tax rate is critical. I am also focused on how energy tax credits are implemented and making sure the government does not pick winners and losers in its legislation. During reauthorization, my Supply Chains Tax team will evaluate the various energy credits currently in place to see what is working and what needs to be adjusted.

NAME: Before 2017, the U.S. corporate tax rate was 35%, the highest in the OECD and the third highest in the world. Tax reform reduced the rate to 21%, bringing the U.S. in line with the average rate in other OECD countries. What does it mean for Congress to protect this lower rate, and what would happen if it increased?

Representative Miller: If the corporate tax rate goes up, it would be devastating for every American, from small business owners to CEOs looking to grow their business. The rising corporate tax rate means higher prices at a time when the U.S. is struggling to compete on a global scale. The best thing we can do in Congress is anchor the corporate tax rate at 21% by reauthorizing the TCJA in 2025—or better yet, cut it even further.

NAME: In 2018, when the 21% corporate tax rate took effect, manufacturers created more than 260,000 jobs (the best year for job creation in 21 years) and increased wages by 3% (the best year for wage growth in 15 years). What other insights has the Supply Chain Tax team gained about the impact of the corporate tax rate from its visits to companies across the country?

Representative Miller:We have seen only positive effects of lowering the corporate tax rate. When the pandemic hit and markets fell due to uncertainty and instability, the lower corporate tax rate gave companies more flexibility to help their employees and keep costs down instead of paying exorbitant taxes to the government. The lower corporate tax rate protected jobs, helped drive more economic growth, and makes a huge difference for American families struggling with inflation. In addition, the lower tax rate resulted in higher federal revenues because companies were able to expand and invest so much after the Trump tax cuts were passed.

NAME: Thank you for advocating for manufacturers’ interests nationwide. What can our members do to stay engaged and support the work of your tax team?

Representative Miller: Tell those who may not know why the corporate tax rate is so important. The majority of Republicans agree on this, but some believe that you have to raise taxes on corporations to reduce inflation. That’s not true. Prices only go down when costs to corporations go down, and the corporate tax rate is an effective way to do that while also stimulating the American economy..