JEFFERSON CITY – In the wake of a new study by Americans for Prosperity (AFP) on industries that would be most affected by a border adjustment tax (B.A.T.), AFP-MO called on House Ways and Means Committee Member Rep. Jason Smith (MO-08) to oppose the inclusion of a B.A.T. as part of any tax reform bill. The Ways and Means Committee will write the tax reform bill that the House will consider later this year and is holding a hearing this week on how tax reform will grow the economy.
A B.A.T. would slap a 20% tax on everything companies import into the U.S and would raise an estimated trillion dollars in revenue. Some lawmakers want to include a B.A.T. as part of an overall tax reform plan. AFP has consistently supported pro-growth tax reform that closes loopholes and lowers rates. The grassroots group believes a B.A.T. tax would amount to a trillion-dollar consumer tax that should be excluded from any plan.
The AFP report, The Border Adjustment Tax Impact by Industry, looked at how particular industries are threatened by a B.A.T.: manufacturing, energy, retail, financial services, and agriculture. Together these industries employ nearly a third of private-sector American workers. The report found that in Missouri, these industries contribute 28.7% to state GDP and employs 944,774 workers. This follows on the heels of a report AFP issued in April showing that Missouri would be hard hit by a B.A.T.
State Director Jeremy Cady issued the following statement:
“This is a trillion dollar tax on consumers masquerading as a tax on imports. Our report shows it’s a raw deal for Missouri and our retail, finance, and advanced manufacturing sectors. Our activists urge Rep. Smith to reject this horribly unfair tax and we want him to know we’ll be watching him during the committee proceedings.”