Manufacturing and logistics businesses are growing in the state, and Carson City and Douglas County are seeing a significant increase in employment in these sectors.
This increase is partly explained by a tax environment that encourages businesses to locate in Nevada, particularly in Northern Nevada. It is essential that we maintain this favorable fiscal environment so that our region can continue to create more jobs.
In Douglas County, we saw an 18% increase in manufacturing jobs between 2010 and 2020. In logistics, there was a 103% increase over the same period. Carson City has seen a smaller increase of 4% over the past decade, but as the Tahoe Reno industrial hub and other industrial parks continue to expand, our area will continue to see strong job growth. well paid.
Nevada has identified manufacturing and logistics as key sectors for diversifying our economy, which will help us weather the next recession. Across Nevada, according to a 2017 study by the National Association of Employers, manufacturing jobs in Nevada have seen double-digit wage growth since the 2010 recession. We need that growth to continue!
The most important thing I’ve learned from the COVID lockdowns is that we need to bring critical manufacturing operations back to America. From prescription drugs and vitamins to paper and semiconductor chips, we rely too heavily on foreign manufacturing. It seems logical that our government is doing all it can to expand manufacturing in America.
The manufacturing sector has benefited greatly from the Tax Cuts and Jobs Act 2017. This bill was like rocket fuel for the manufacturing sector, which has been growing in the United States at a record pace. In 2018 alone, US manufacturers created 263,000 jobs – the best year for job creation in two decades. Manufacturers were also able to increase salaries and benefits for their employees.
Both our nation and our state recognize the importance of manufacturing not only to our economy, but also to our supply chain. So, it seems Congress shouldn’t be considering tax increases that will stifle the growth of this important sector and perhaps push more critical manufacturing overseas.
Some members of Congress want to overturn parts of the 2017 law, claiming that the reduction in corporate tax rates reduced the flow of funds to the US Treasury, but that’s not true! The corporate tax rate was cut to 21% in the 2017 law, and corporate income tax revenue in 2021 was $372 billion – almost as much as the Congressional Budget Office’s expected to receive when the rate was 35%. Corporate tax revenue for 2022 is up 22% so far on the previous year.
If Congress implements the provisions of the 2017 law, such as raising the corporate tax rate again, you will see companies moving to countries with much lower rates. A recent survey of manufacturers showed that if Congress repeals the 2017 law, 91% of manufacturers say they will struggle to create jobs and grow.
I urge our members of Congress, and especially Senator Cortez Masto, to uphold the Tax Cuts and Jobs Act of 2017, which is creating record numbers of jobs and helping to maintain Nevada manufacturing and of the United States on the right track.