CEO DATELINE - Business coalitions to duel over Border Adjustment Tax
CEO DATELINE - Business coalitions to duel over Border Adjustment Tax
- February 3, 2017 |
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Walt Williams
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Two coalitions have formed in recent days to advocate both for and against a Border Adjustment Tax—an idea popular among House Republicans although not necessarily with President Donald Trump.
More than 100 businesses and associations announced Wednesday the creation of Americans for Affordable Products, which will fight against any policies adopting a BAT. At the same time, 25 companies—including Dow Chemical and GE—launched the American Made Coalition to advocate for comprehensive tax reform, including a border tax.
The businesses and associations that are part of Americans for Affordable Products largely include retailers and manufacturers of foods and consumer products. Among the members is the Consumer Technology Association, which believes a BAT would increase prices on a wide range of products.
"The retail industry pays among the highest effective tax rates of all industries," CEO Gary Shapiro said. "We, therefore, enthusiastically support reforming the current tax code and welcome the fact that both the President and Congress do so as well. However, the Border Adjustment Tax is harmful, untested, and would put American retail jobs at risk and force consumers to pay as much as 20 percent more for family essentials."
Other coalition members include the National Retail Federation, American Apparel & Footwear Association, Association of Global Automakers and the National Grocers Association. http://bit.ly/2l0GUNh
The American Made Coalition supports slashing the current origin-based corporate income tax—which it calls the "Made in America tax"—and imposing a BAT instead. The coalition doesn't list members on its website but Reuters news agency identified several as large U.S.-based exporters such as Boeing, Eli Lilly and Pfizer.
"American workers and businesses are not competing today on a level playing field with foreign competitors because of an outdated and unfair tax system," coalition spokesman John Gentzel said. "The American Made Coalition is committed to advancing legislation that modernizes our tax system, levels the playing field for American businesses and workers, encourages investment, incentivizes job creation in the U.S., and helps American-made products compete worldwide."
House Republicans have floated the idea of enacting a BAT along with comprehensive tax reform. However, the idea isn't popular among all conservatives and Trump himself has called the idea "too complicated." http://bit.ly/2karMuY
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