We Support Pro-Growth, Job-Creating Policies
Americans want policies that promote economic growth and help put more money back in their pockets. President Donald Trump and the new Republican Congress have made it a priority to pursue pro-growth policies that do just that.
The Border Adjustment Tax Does the Opposite
The Border Adjustment Tax, under consideration in Congress today, slaps outrageous taxes on imported goods—like clothing, food, medicine, and gasoline—products Americans rely on every day.
Under the BAT, a U.S. large company may virtually pay no corporate taxes simply because it exports products, while another American company delivering affordable essentials to their consumers will be faced with crushing taxes simply because many of these essentials must be imported. This means higher prices for everyday goods that Americans purchase, and taxpayer subsidies for products sold abroad. The Border Adjustment Tax is a trillion-dollar tax break for a few corporations and a $1,700 bill for ordinary household expenses delivered to the address of every hardworking American family.
It’s not fair to make middle-class Americans pick up the tab to ensure some of the largest corporations pay little to no taxes. Congress should look to cut wasteful spending instead of imposing new taxes.
The Border Adjustment Tax Puts Jobs at Risk
The Border Adjustment Tax will hurt job growth. Retail jobs, in particular, are at risk. Retail represents one in four American workers—that’s 42 million jobs. If enacted into law, many retailers would be forced to downsize or close their doors altogether. And it is not just about retail jobs: the retail industry creates demand for millions of jobs in logistics, technology and manufacturing that would be impacted as well.
Top Economists & Experts Agree That This Tax Is “Doomed to Fail” & Full of “Unintended Consequences”
To Learn more, click our links below:
Larry Kudlow, Senior Economic Adviser to President Trump
“This is an exercise in government planning and complexity that I believe is doomed to fail”
“These are the words of conservative television commentator Larry Kudlow on Ryan’s proposal on CNBC last week. Kudlow helped write Trump’s tax plan … ‘I think the whole corporate tax reform, which is the most important pro-growth measure, will go down the drain over this.’” (Rachael Bade, “How Trump Keeps Trampling on Hill GOP’s Big Plans,” Politico
David McIntosh, Club for Growth President
“It’s another case of Washington creating winners and losers, instead of doing what’s necessary to reduce taxes across the board: Congress must do the hard job of actually cutting the size of the federal government and its spending, instead of gaming the tax code to create costly offsets.”
“House Republicans now have a prime opportunity to undertake corporate tax reform, and they’ve proposed some pro-growth ideas, including rate reductions, incentives for investment, and reform in how purchases are expensed. Unfortunately, all of that good reform could be wiped out by a separate complicated proposal from the House GOP that amounts to a costly new consumer tax called the Border Adjustment Tax (BAT).” (David McIntosh, Op-Ed, “Let’s Bury The Idea Of A Border Adjustment Tax,” Investor’s Business Daily, 1/20/17)
Steve Forbes, Forbes Media Chairman & Editor-In-Chief
“This levy will cost American consumers at least a trillion dollars over the next ten years.”
“Knowing how Washington politicians calculate these things, you can bet the amount will end up being considerably more. Prices for everyday items, such as socks, shoes and household appliances, will go up. So will tech devices like the iPad, not to mention automobiles and trucks. Gasoline? Millions of Americans will pay an additional 30 cents or more per gallon at the pump. Lower-income and struggling middle-class Americans will get hit the hardest.” (Steve Forbes, “OMG! House Republicans Are Preparing To Hit Consumers With A Horrible New Tax That Will Harm Trump And Hurt The Economy,” Forbes, 1/11/17)
Tim Phillips, Americans for Prosperity President
“Border adjustability is nothing more than a tax on American consumers.”- Tim Phillips
Bill Dudley, President, Federal Reserve Bank Of New York: “I also think there could be a lot of unintended consequences.”
“Another prominent critic of a ‘border adjustment tax’ emerged Tuesday: the president of the New York Federal Reserve … The New York Fed president [Bill Dudley] agreed that such taxes would mark a ‘pretty dramatic change.’ ‘I think that it will lead to a lot of changes in the value of the dollar, the price of imported goods in the U.S., and I’m not sure that would all happen very smoothly,’ Dudley said. ‘I also think there could be a lot of unintended consequences.’” (Michelle Caruso-Cabrera, “NY Fed’s Dudley Sees ‘A Lot Of Unintended Consequences’ From Border-Tax Plan,” CNBC, 1/17/17)
Adam Posen, President, Peterson Institute for International Economics
“On the economics side, it’s just a terrible idea. It’s a huge revenue sink.”
Posen continues with: “It goes with the other tax cuts and it isn’t going to make enough to pay back for them. The dynamic effects are going to be very low, it’s not pro-investment, it’s pro-reallocation … the big effect is it’s going to be a redistribution of who pays taxes and it’s going to hugely raise deficits.” (“U.S. Border Tax Is a Terrible Economic Idea: Posen,” Bloomberg, 1/11/17)