PPAI’s Legislative Education and Action Day (L.E.A.D.) takes the promotional products industry’s message to Capitol Hill next week, and industry members around the country can join in sharing their thoughts through the L.E.A.D. Virtual Fly-In.
Running April 26-27, more than 80 industry professionals will be in Washington, D.C. to speak with members of Congress about the effectiveness of promotional products and the strength of the industry in the U.S. Beginning April 24, industry members can support L.E.A.D.’s efforts by participating in PPAI’s Virtual Fly-In each day of the week. Each day will have a specific message to share with elected officials that will support L.E.A.D.’s efforts in D.C. The daily messages will target a variety of issues, including promotional products effectiveness, independent contractors and the border adjustment tax.
Tax reform, including the border adjustment tax (BAT) will be a key element of the L.E.A.D. discussions, as Congress is expected to address the issue soon, and the introduction of a BAT may be an important element of those reforms. Designed as a “pay-for” solution to cut income tax rates, the BAT would levy a 20-percent tax on all U.S. imports—including promotional products—and is anticipated to hurt American consumers and the nation’s largest employers by increasing the cost of everyday products. PPAI staff have already traveled to Washington, D.C., this year to meet with members of the House of Representatives Ways and Means and Senate Finance committees to oppose the BAT. The Association has joined a coalition of more than 400 like-minded business leaders, corporations and industry groups, “Americans for Affordable Products,” to oppose the tax, and hundreds of promotional products professionals have already contacted their representatives asking them to reject thisproposal.
PPAI has also been working to educate members about what BAT could mean to their businesses and families. While it is true that most promotional products are manufactured overseas and imported to the U.S., once in the U.S., these products are sold by U.S. workers, and used to promote U.S. goods and services. Even more importantly, these products support thousands of U.S. factory jobs because most promotional products are imported as blanks and American workers apply the decorations domestically.
The industry’s customers are unlikely to increase their marketing budgets by 20 percent to offset the effects of BAT. Rather, they will either buy fewer products, buy less expensive products or shift their advertising dollars to an advertising medium that will not be taxed. And this will be bad for the promotional products industry.
Industry members can add their voices 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 without affecting American families. Follow this link to send a message to Congress: Proposed Border Adjustment Tax—Bad For The Promotional Products Industry.