A recent report published by the White House outlines potential job losses in the manufacturing sector if Congress does not extend the Trump Tax Cuts as part of the proposed One Big Beautiful Bill. The report indicates that more than 1.1 million manufacturing jobs and nearly six million jobs overall could be lost, which would significantly impact small businesses currently benefiting from tax reforms. Key points from the report highlight the importance of the pass-through deduction for small businesses and the potential challenges posed by the expiration of accelerated depreciation, which could hinder their ability to invest and grow.

The report states that over 96% of American businesses are organized as pass-through entities, which would be adversely affected if the 20% deduction associated with tax reform is not renewed. Additionally, it notes that more than 74% of manufacturers have fewer than 20 employees, indicating a disproportionate impact on small businesses within the sector. The lack of accelerated depreciation for the first time in decades could further limit manufacturers’ investments in necessary equipment and technology, ultimately affecting economic growth and job creation.

Family-owned businesses, which make up a significant portion of the manufacturing industry, are also highlighted in the report. The reduction of the estate tax exemption threshold at the end of 2025 could subject more family business assets to taxation, threatening their viability during ownership transitions. The report urges Congress to consider the implications of these tax policies on small and family-owned manufacturers, emphasizing the need for protective measures to ensure their survival and continued contribution to local economies.

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