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'Two-thirds of manufacturers' say tax plan will lead to reinvestment and new jobs, says industry group CEO

  • "Two-thirds of manufacturers" say the GOP tax plan will lead to reinvestment and additional hiring, CEO Jay Timmons said on "Squawk Box."
  • Timmons leads the National Association of Manufacturers.
  • He says the tax reform plan is "already priced in" by many manufacturers.

The GOP tax reform plan unveiled Wednesday would lead to broad reinvestment in manufacturing, according to a survey of American producers released Friday.

"Two-thirds of manufacturers said, specifically, that if we get this tax plan through, they'll invest in new plants and equipment, and hire new workers," Jay Timmons, CEO of the National Association of Manufacturers, said on "Power Lunch."

Timmons says the tax reform plan is "already priced in" by many manufacturers, who expect the proposed, lower 20 percent corporate tax rate.

"They're banking on us to actually do what's right for the American people and for American manufacturers," Timmons said.

The survey of over 14,000 U.S. manufacturers found 65 percent would increase capital spending if a comprehensive corporate tax reform plan were passed. It found 64 percent of manufacturers would expand business, 57 percent would hire more workers, and 52 percent would increase employees' wages and benefits.

The S&P 500 hit a new record high to end the third quarter, and the CEO said that momentum can continue.

Timmons says the Republican tax proposal would "make it possible" to reach an economic growth rate above 3 percent.

"We ought to be thinking it makes sense to have a growth rate higher than the average during the Carter presidency, for crying out loud," Timmons added.