Jun 20, 2017
For A Thriving And Competitive U.S. Manufacturing Sector, Drop The Divisive Border Adjustment Tax And Unify Americans Around Reform
Post by Jeff Brownlee
Arlington, VA — House Speaker Paul Ryan today spoke at the National Association of Manufacturers annual summit where he reaffirmed Congress’ commitment to a bold, comprehensive tax reform package in 2017.
A recent poll found that 72-percent of Americans feel that the “economy is rigged to advantage the rich and powerful.” It is, and there’s no greater contributor to the rigged economy than the U.S. tax code. That is why Congress should seize the opportunity to unify Americans around a positive vision for comprehensive tax reform that will improve lives and make America competitive – without placing new burdens on taxpayers.
Freedom Partners Chamber of Commerce Vice President of Policy Nathan Nascimento issued the follow statement:
“We urge Speaker Ryan, Chairman Brady and House leaders to unify Americans around a positive vision for reform under a simplified, more efficient, predictable and equitable tax code that benefits all Americans. Our broken tax code rigs the economy in favor of the wealthy and well-connected at the expense of the least fortunate; comprehensive tax reform will unrig it.
“The reason U.S. businesses are disadvantaged is because the United States has one of the highest corporate tax rates in the world. American manufacturers deserve a pro-growth tax and regulatory framework to thrive and be more competitive in the international marketplace— not over a trillion dollars in new taxes. Now is the time to drop the divisive BAT and work together to achieve this once-in-a-generation opportunity.”
The BAT signifies a very real threat to the U.S. manufacturing sector. A Freedom Partners and Americans for Prosperity report warns that the BAT tax would impose crushing new costs on manufacturers who rely on imported goods, leading to higher prices for consumers, fewer jobs and less economic growth.
Freedom Partners and Americans for Prosperity recently launched a major campaign to highlight the urgent need for comprehensive tax reform, which outlined a positive vision for a fairer, flatter, simpler tax code – without placing new burdens on taxpayers. There are many excellent proposals in the House tax reform blueprint that would promote economic growth and improve lives, but the BAT would hurt consumers and undermine the positive aspects of reform.
Border Adjustment Tax Threatens American Manufacturers With Complexity, Disruptions To Supply Chain READ
There Is No Such Thing As A “Made In America” Tax WATCH
4 Myths You Heard During The Ways And Means Committee Hearing On The Border Adjustment Tax READ
Border Adjustment: Myth Vs. Fact READ
House Leaders Long-Opposed Tax Loopholes And Special Interest Exemptions For Favored Industries Under BAT
Bloomberg BNA: “No Industry Carve-Outs In Border Adjustment Plan: Brady.” “House Ways and Means Chairman Kevin Brady (R-Texas) is working hard to avoid exempting any industries from the border adjustment proposal he hopes will be a piece of tax reform.” (Colleen Murphy, “No Industry Carve-Outs In Border Adjustment Plan: Brady,” Bloomberg BNA, 1/8/17)
Chairman Brady: “I Always Worry About That With Exemptions, That That Will Be The New ‘Lifetime Lobbyist Employment Act’ Going Forward, So I’d Strongly Prefer Not To Go That Route.” (Colleen Murphy, “No Industry Carve-Outs In Border Adjustment Plan: Brady,” Bloomberg BNA, 1/8/17)
Bloomberg BNA: “Expect Import Tax Transition Rules, Not Carve-Outs: Brady.” “Transition rules would soften the impact of a border-adjusted import tax, according to the House Ways and Means Committee chairman … There will be no exceptions or carve-outs, he said.” (Kaustuv Basu & Aaron Lorenzo, “Expect Import Tax Transition Rules, Not Carve-Outs: Brady,” Bloomberg BNA, 2/8/17)
House Blueprint For Tax Reform: Tax Carve Outs And Loopholes Are Harmful To The Economy. “When carve-outs and loopholes are built into the tax code, they increase complexity, undermine the principle of fairness, and create economic distortions that draw resources away from more productive uses and therefore reduce economic growth.” (Speaker Of The House Paul Ryan, “Tax,” A Better Way: Our Vision For A Confident America, 6/24/16)