PPAI has joined with industry businesses and a coalition of companies and trade organizations representing myriad facets of the U.S. economy to voice its opposition to the proposed Border Adjustment Tax (BAT). The proposal, if incorporated into Congress’ tax reforms, would levy a 20-percent tax on all U.S. imports while eliminating the tax on exports. The proposal poses a discriminatory tax on all imported products—including promotional products—and is anticipated to hurt American consumers and the nation’s largest employers by increasing the cost of everyday products.

Industry suppliers SanMar and alphabroder have collaborated on a letter to their customers to educate them on the BAT and its potential impact on the industry. In part, it read, “While we do not want to take anything away from Made in USA products or the industries that produce goods in America, the manufacturing and labor base of the apparel industry, like many others, is largely absent from this country and has been for decades. It is simply impractical and unrealistic to assume that such a large, across-the-board punitive tax on imports will somehow bring garment factories and their workers back to the United States.

“The reality is that this tax will disrupt global business, cause job losses at American companies relying on imports and lead to significant increases in prices on a wide variety of consumer goods, including the products your business relies on. For a typical reseller in our industry, more than 95 percent of their current apparel offerings would be subject to substantial price increases.”

A large percentage of promotional products are manufactured overseas and imported to the U.S. In PPAI’s assessment, the border adjustment tax will hurt the promotional products industry and PPAI asks industry members to add their voice to the Association’s and tell their member of Congress to reject the border adjustment tax and instead focus on implementing tax reform that continues to spur economic growth that’s not at the expense of American families.

Follow this link to send a message to Congress: Proposed Border Adjustment Tax—Bad For The Promotional Products Industry.