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Tax reform will 'unleash' job creation and wage increases, NAM CEO says

  • The National Association of Manufacturers is "firmly behind" the Trump administration's tax reform proposal, President and CEO Jay Timmons told CNBC.
  • He believes something will be passed this year because Americans are counting on it getting done.
  • If we can reduce the cost of doing business in this country, we unleash the power of manufacturing, he said.

The National Association of Manufacturers is "firmly behind" the Trump administration's tax reform proposal, and believes something will be passed this year, President and CEO Jay Timmons told CNBC on Tuesday.

He also believes it will help bolster job creation, noting that manufacturers supply an "inordinate" amount of jobs in the United States.

"If we can reduce the cost of doing business in this country, we unleash the power of manufacturing. We unleash the ability of employers to actually not only create new jobs, create new opportunities but also lift the wages of those who are already working with us," Timmons said in an interview with "Power Lunch" from the sidelines of the NAM summit.

Earlier in the day, the association heard from both House Speaker Paul Ryan and Vice President Mike Pence at its summit, both of whom said a tax system overhaul would be completed by the end of the year.

Timmons believes it will happen because Americans are now counting on policymakers to get things done.

"Congress is under a tremendous amount of pressure. The administration is under a tremendous amount of pressure to actually get this done, and when the American people want something done, it's funny how quickly Congress will actually respond," he said.

Tom Riordan, CEO of Neenah Enterprises, also attended the summit and agrees that some sort of tax reform will become law.

"It may be sloppy. It may be in two pieces as its being suggested here lately, but I do think it's going to get done," he said.

While his company won't initially hire after the overhaul is passed, it is part of the equation, Riordan told "Power Lunch."

"It allows us to invest in additional capital equipment to drive our performance and that drives job growth," he said.