Some of the biggest names in American business are lobbying for the implementation of President Donald Trump’s proposed border adjustment tax. In a recently penned letter to legislators in Washington, CEOs from Boeing, Caterpillar, Merck, Pfizer and others have urged the government to pursue the tax.
Company officials believe that the border adjustment tax would level the playing field for American companies. Current laws, they believe, give foreign countries an unfair trade advantage.
The letter was sent to both Senate and House leaders, stating that “Our tax code penalizes American workers who make products or provide services sold abroad, while favoring their international competitors.” The letter went on to say that the companies applaud “efforts to pursue tax reform that is both big and bold. Incremental tweaks will not level the playing field for American workers or dramatically reinvigorate economic growth.”
The system of taxation currently in place has been dubbed the “Made in America” tax. Critics of the system claim that there are financial advantages to companies who outsource products and services and subsequently import them.
The proposed border adjustment tax would levy an additional tariff on imported goods, making it more expensive for products and services to originate outside of the United States.
Lawmakers who oppose the border adjustment tax do so because they feel that the border adjustment tax (BAT) will cause higher prices for retailers and end consumers. Americans for Affordable Products cite clothing, food, medicine and gas as essentials which will be affected by the BAT.
President Trump has yet to offer specifics on the proposed tax plan, but has indicated that “[we] are going to lower taxes on American business so it’s cheaper and easier to produce products and beautiful things like airplanes right here in America.”
Lawmakers have yet to issue a response to the letter.