It’s a new day in Washington, D.C. With President Donald Trump’s return and a Republican-controlled Congress, there is real hope for change that will strengthen our economy and make the nation more secure.
Before this new Congress, one of the first tasks is to make Trump’s first-term tax cuts permanent. Some of these cuts were enacted in 2017 but have already expired. If Congress does not act, more will disappear at the end of this year.
A new report from the National Association of Manufacturers shows why preserving these tax cuts is critical for North Carolina. Without action to extend the tax breaks, North Carolina could lose nearly 200,000 jobs and billions in economic activity. Those are steep costs that communities across North Carolina would pay.
The good news is that Republicans in Congress, including members of North Carolina’s congressional delegation, are working hard on a tax bill. A quick look at the history of these tax cuts explains why this issue is a congressional priority.
The 2017 Trump tax cuts included tax breaks for individuals and businesses across the economy. Manufacturers, big and small, were among the bill’s principal beneficiaries. Lower domestic and international tax rates, new deductions for small business owners, and incentives for innovation and investment spurred unprecedented manufacturing growth.
In 2018, the first year the tax cuts were in place, manufacturers created jobs at the highest rate in decades. Capital spending also spiked as manufacturers took advantage of tax reform to purchase new equipment, raise wages and expand facilities.
We in North Carolina benefited from this manufacturing resurgence. Across the state, we now have more than 9,000 manufacturers that employ nearly 475,000 people. The industry accounts for almost 15% of our gross domestic product, adding $98.5 billion to our economy.
Today, some of the world’s leading manufacturers in pharmaceuticals, semiconductors, food and chemistry call the Tarheel State home. Last year, Site Selection Group named us the best state in the U.S. for manufacturing due to our strong, educated workforce, pro-business climate and geography.
In 2025, Congress can keep the momentum going and protect North Carolina’s manufacturing sector by restoring Trump’s pro-manufacturing tax code.
Among the most vital tax provisions that Congress must renew are those that lower costs for research and innovation by allowing businesses to expense and deduct certain costs. Also, lawmakers’ priorities are keeping exclusions that protect small, family-owned manufacturers from the estate tax and maintaining individual and corporate tax rates that have helped business owners keep more of their hard-earned money and compete on an international scale.
Beyond getting the policy right, Congress’s timing is critical.
Currently, manufacturers across our state are making hiring and production plans for the years ahead. Other manufacturers outside our state consider North Carolina a possible place to relocate or expand. The sooner Congress provides certainty that the U.S. tax code will continue to support manufacturers, the sooner business leaders can lock in their decisions and make additional investments in our state.
As a North Carolina legislator, I am proud of our work in Raleigh to make our state a place where businesses can thrive. We have cut the corporate tax rate, invested in our infrastructure, and streamlined state regulations. Thankfully, North Carolina legislators again have strong partners in the nation’s capital.
Eight years ago, Trump and Republicans in Congress helped North Carolina launch a manufacturing boom. In 2025, it is time for Congress to do it again by sending a bill to Trump’s desk that permanently makes all of 2017’s pro-manufacturing tax policies.
Sen. Todd Johnson represents District 35 in the N.C. Senate and is majority whip.
