BAT unlikely to pass, industry observers say
The Border Adjustment Tax (BAT) legislation, which has created strong opposition from the automotive sector and other industries, is unlikely to pass Congress, industry experts said at the New York International Auto Show.
Some were more confident about its demise than others. Nariman Behravesh, chief economist for IHS Markit, called the tax basically dead. The tax was a pet project of House Speaker Paul Ryan, who said it would help pay for a corporate tax cut. But the Republican base was never enthusiastic about the BAT, NADA President Peter Welch said at the New York International Auto Show.
NADA strongly opposes the tax and, along with WANADA and other dealer organizations, was part of a dealer fly-in organized by AIADA last month. AIADA President Cody Lusk has said a 20 percent BAT would add $2,000 on average to the price of a new car. Other studies have pegged the figure at $1,700. Mitch Bainwol, CEO of the Alliance of Automobile Manufacturers, gave the tax only a small chance of passage.
Trump meets with and listens to business leaders, and CEOs from a variety of industries have expressed their opposition to the tax.Download Bulletin PDF