Manufacturing and logistical companies are growing around the state, and Carson City and Douglas County are seeing significant job increases in these sectors.
Part of the reason for the increase is a tax environment that is encouraging companies to move to Nevada, especially Northern Nevada. It is critical that we maintain that tax-friendly environment so our region can continue to create more jobs.
In Douglas County, we have seen an increase of 18% in manufacturing jobs between 2010 and 2020. In logistics, there was an increase of 103% in during that same time frame.
Carson City has seen a smaller increase at 4% during the last decade, but as the Tahoe Reno Industrial Center and other industrial parks continue to expand, our region will continue to see great growth in high paying jobs.
Nevada has determined that manufacturing and logistics are key sectors to diversifying our economy, which will help us ride out the next recession. Across Nevada, according to a 2017 study by the National Association of Employers, manufacturing jobs in Nevada saw double-digit wage growth since the 2010 recession. We need that growth to continue!
The most important thing that I 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 are relying too much on foreign manufacturing. It seems only logical that our government should do all it can to grow manufacturing in America.
Manufacturing greatly benefited from the Tax Cuts and Jobs Act of 2017. That one bill was like rocket fuel for the manufacturing sector, which has been expanding across the U.S. at a record pace. In 2018 alone, U.S. manufacturers created 263,000 jobs - the best year for job creation in two decades. Manufacturers were also able to increase wages and benefits for their employees.
Our nation and our state both recognize the importance of manufacturing not only to our economy, but to our supply chain. So, it seems Congress should not be considering tax increases that will stifle the growth of this important sector and possibly push more critical manufacturing offshore.
Some members in Congress want to roll back parts the 2017 Act, claiming that the reduction in corporate tax rates has reduced funds flowing into the U.S. Treasury, but that is not true! The corporate tax rated was reduced to 21% in the 2017 Act, and corporate income tax revenue in 2021 was $372 billion — nearly as much the Congressional Budget Office expected to receive when the rate was 35%. Corporate tax revenue for 2022 so far is up 22% from a year earlier.
If Congress rolls the provisions of the 2017 Act, such as increasing the corporate income tax rate again, you will see companies moving to countries with much lower rates. A recent survey of manufacturers showed that if Congress rolled back the 2017 Act, 91% of manufacturers say they will have trouble creating jobs and expanding.
I urge our Congressional members, and especially Senator Cortez Masto, to maintain the 2017 Tax Cuts and Jobs Act that is creating record job numbers and helping keep Nevadan and American manufacturing on the right track.
P.K. O’Neill is a retired law enforcement officer, serves on the Board of Trustees for Carson Tahoe Health Systems, and is the State Assemblyman for District 40.
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