PPAI Calls For Industry Action On Border Adjustment Tax
With at least some legislation now on the table to repeal and replace the Affordable Care Act, Congress can now turn more of its attention towards tax reform. A key element of tax reform could be the introduction of a border adjustment tax (BAT). Designed as a “pay-for” solution to cut income tax rates, the BAT would levy a 20-percent tax on all U.S. imports while eliminating the tax on exports.
Congress is not of one mind on the BAT proposal, with both conservative and liberal members questioning the legitimacy and effectiveness the new tax would have on the economy and families alike. Many are likening this proposal to a consumer tax, since the financial impact of this proposal would cost the average American family at least $1,700 per year.
A high 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.