Border Adjustment Tax proposal appears mostly dead
Although many Republicans in Congress are eager to move on tax reform, few are enthusiastic about the border adjustment tax (BAT), according to The Hill. Nor has President Trump expressed support for the tax. Its main backer has been House Speaker Paul Ryan, who sees it as a way to pay for the corporate tax cut that Trump and Congressional Republicans want.
In the spring, AIADA, backed by NADA, organized a dealer fly-in to Capitol Hill for dealers to lobby their members of Congress to oppose the proposal. Click here for the WANADA Bulletin report.
The House Ways and Means Committee held a hearing on the BAT last week and heard opposition from the CEO of Target and other retailers and importers who opposed the idea. AIADA President Cody Lusk said the hearing raised concerns that under the tax, middle class Americans would be forced to pay for a corporate tax cut.
While Americaês international nameplate dealers fully support federal tax reform efforts, they are deeply opposed to the border adjustment tax provision, which will drive up the cost of every vehicle on their lots and ultimately impact the price customers pay for reliable, safe transportation by an average of $2,000 per vehicle, Lusk said.Download Bulletin PDF