Apr 28, 2017
Border Adjustment Tax “Probably Dead” — White House Confirms Harmful Tax Not Part of Tax Reform Efforts
Post by Freedom Partners
The U.S. Senate’s second ranking Republican says the proposed Border Adjustment TX (B.A.T.) – or 20-percent tax on imported goods proposed by Congress in order to pay for rate reductions – is “probably dead.”
“My guess is based on the reception here in the Senate, with many people skeptical of how it would work, the border adjustment tax is probably dead,” Sen. John Cornyn (R-TX) told the Houston Chronicle. “There’s a reason you didn’t see it [in the President’s plan],” he added.
The comments came following President Donald Trump’s release of a bold tax reform plan to provide tax relief for businesses and individuals, re-ignite economic growth, encourage long-term investment in the U.S. and improve American competitiveness in the international marketplace.
A key part of the President’s plan was the decision to exclude the trillion-dollar import tax, which would result in more expensive everyday consumer goods for millions of Americans.
The White House’s intention to move forward on tax reform without B.A.T, now or in the future, was expressed to senior Americans for Prosperity officials following the release of the President’s plan.
“The Trump administration also made efforts to rally support from influential conservatives. Mnuchin and White House economic adviser Gary Cohn on Thursday met with groups such as Americans for Prosperity (AFP),” The Hill reports.
“Today we’ve confirmed that moving this plan forward is a top priority, and we can expect to see tax reform on the fast-track in Washington,” AFP President Tim Phillips said. “We’re glad to see real progress on reform that excludes the Border Adjustment Tax — a harmful and unnecessary tax on consumers,” he added.
Freedom Partners urges lawmakers to follow the administration’s lead by focusing on good pro-growth reforms that will help make comprehensive tax reform a reality – without punishing consumers with a trillion-dollar tax hike.