An update on where BAT is politically (2/10/17):
Congressional leaders are championing a controversial new proposal that would significantly impact footwear companies. The Border Adjustment Tax proposal would raise the effective tax rate for importers while also giving exporters a tax exemption (Read the FDRA one pager). The House tax-writing committee plans to include this proposal in a larger tax reform package that would lower the corporate rate from 35 percent to 20 percent. By saving close to $1.2 trillion, the Border Adjustment Tax will generate one of the bill’s biggest revenue raisers to help “pay for” the overall tax cuts. House Republicans have framed the proposal as ending the “Made in America tax,” and are trying to sell their plan through economic theory. The problem is that not all industries are the same, and therefore a one-size-fits-all approach that treats basic goods like footwear the same as technology and heavy machinery will never work.
This “border adjustment tax” proposal would bankrupt many footwear companies, kill thousands of U.S. footwear jobs, and substantially raise footwear costs on working class families. These are the facts. We have worked with many FDRA members to run the actual numbers and analyze the impact.
FDRA is working to push back and kill this proposal.
Below you will find some basic info on the border adjustment tax, as well as important action items for you to take. FDRA is setting up weekly update calls on this issue to keep the entire industry informed as to what is happening. FDRA members will continue to get more timely updates and deeper insights through its alerts and Politics and Trade newsletter. If you work for an FDRA member company but are not on these newsletters, please let us know! Non-FDRA members should consider joining FDRA to get insights and updates and join in support of over 80% of the industry pushing back against this backwards proposal. Contact FDRA to learn more about how we can support your business as well as advocate for you in Washington and around the globe!
- FDRA’s New Footwear & Politics in Focus: Border Adjustment Tax proposal (Be sure you have registered for the FDRA Intel Center for this guide which provides a deeper analysis of the issue. You can register for the Intel Center here)
- FDRA’s One-Pager: 2017 Tax Reform and Border Adjustability
- House Republican Tax Reform Blueprint – See Pages 27 and 28 for Border Adjustability
Top BAT Stories This Week:
- A Fight is Coming Over the Border Adjustment Tax – CNN Money
- How the GOP’s Corporate Tax Plan Could Backfire and Slam Consumers – CNBC
- Exporters Tout Benefits of Republicans’ ‘Border Adjustment’ Proposal – Wall Street Journal
- Small Businesses Uneasy Over Border-Adjustment Tax Plan - Wall Street Journal
- U.S. Tax Plan Would Break WTO Rules, Lawyers Say, as EU Business Frets – Reuters