PPAI Asks Members To Support Opposition To Border Adjustment Tax
The proposed border adjustment tax (BAT) would levy a 20-percent tax on all U.S. imports, including promotional products, while eliminating the tax on exports. PPAI is among the industry businesses and a diverse coalition of companies and trade organizations that have joined together to oppose BAT.
“At a glance, the purpose of the BAT makes sense: ‘Bring back jobs and give us a level playing field against imports,’” says Geiger CIO Dale Denham, MAS+. “I like the goal but unfortunately, the outcome will not match the proposal’s intentions for the economy as a whole or our industry. Raising all imported items by 20 percent will make the entire industry less competitive. Cost per impression increases, and advertisers may move to other to media.”
The discriminatory tax on all imported products—including promotional products—is anticipated to hurt American consumers and the nation’s largest employers by increasing the cost of everyday products. 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.
The Association 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.