Earlier this year, the Republican Party proposed a Border Adjustment Tax. This tax would impose a 20% tariff on goods exported out of the United States, and decrease taxes for imports.
Recently, 100 businesses have joined forces to form the Americans for Affordable Products coalition. Members of this new coalition are reported to include Macy’s, Payless Shoe Source, and Kohl’s. Among the other members are representatives of the restaurant, furniture and pet goods industries, as well as the automotive industry.
Members of the coalition are in agreement that, while the tax codes may require modification, the proposed tariff would put a large and unnecessary burden on American commerce. The coalition claims that not only would industries and the employment rate be affected, but also the average American consumer.
Americans for Affordable Products was formed on the premise that the Border Adjustment Tax would eliminate tax deductions which could previously be taken by importing companies. This, in turn, would cause an increase in cost for the companies and ultimately an increase in price for goods and services. The National Retail Federation has estimated the cost increase to be $1700 for the typical American family.
Retail Industry Leaders Association president Sandy Kennedy states that “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.”
National Retail Federation president Matthew Shay stated that companies were in support of “creating a less complicated, more straightforward and equitable tax code.”
As an alternative to the Border Adjustment Tax, Americans for Affordable Products would suggest legislation which would lower corporate taxes. The coalition would also recommend that taxes be limited to income earned only in the United States.
President Trump has called the Border Adjustment Tax “too complicated”. However, recent reports from the White House indicate that he may now be on board with the proposal.
The Americans for Affordable Products coalition is welcoming new members. Information is available for both consumers and businesses on its website.