CASE Denounces BAT as Massive Tax Increase on America’s Working Families
Today CASE, Consumer Action for a Strong Economy, issued the following statement in anticipation of this afternoon’s hearing by the House Committee on Ways and Means, Tax Policy Subcommittee, to consider “How Tax Reform Will Simplify our Broken Tax Code and Help Individuals and Families.” Said CASE:
“Congress right now has the remarkable opportunity to reform our nation’s complex and broken 75,000 page tax code. Americans everywhere are hopeful that Washington will rise to the challenge and create reform that eliminates obstacles to economic growth and job creation, and lowers the burden paid by workers and businesses.
“To ensure this is accomplished, the first order of business must be for Congress to abandon any remaining attachment to a border adjustment tax (BAT), in any form or variation. A BAT would impose a massive 20% surcharge tax on the goods families buy every day, including food, apparel, energy, appliances, autos, tools and other items too numerous to mention. This is the very opposite of needed tax relief, and would render tens of millions of struggling Americans poorer. In fact a recent National Retail Federation study found the BAT will steal $1,700 per year from the budget of an average family of four.
“While it doesn’t require an extensive survey to understand that Americans would oppose paying 20% more for many of their daily purchases, a poll conducted by the Retail Industry Leadership Association nevertheless confirmed that Americans are solidly opposed to the BAT proposal. The fact that consumers would pay more in order to lower rates for corporations would further be a political disaster.
“Aside from the direct impact on consumers, the BAT would harm economic growth by making America’s exports more expensive, landing a blow to manufacturing jobs. The BAT would also cause a direct increase in the cost of insurance, harming local bond markets and real estate investment. From almost every angle, the BAT is a pickpocket, a job killer, and an economic growth stopper.
“Despite the American people and business leaders nationwide overwhelmingly rejecting the BAT, some in Washington still remain warm to the idea as a viable means to raise revenue. This is a mistake; including the BAT in any version will be the equivalent of pulling the pin on the grenade, killing any chance for meaningful tax reform once and for all.
“We welcome Congress looking at ways to help America’s families with a simpler tax code that lowers rates and unleashes the power of America’s economic engine. To truly help families, the first order of business must be to summarily and permanently reject the BAT as part of any tax reform plan. America’s families need tax relief, not a massive new tax on their everyday purchases courtesy of the BAT.”
