Congress Should Reject Border Adjustment Tax
(Washington, D.C.) – It is expected that Congress and the president will soon begin work on a broad reform of the U.S. tax code. Policymakers are optimistic that both the House and the Senate may debate reform packages, and ultimately enact significant tax changes into law in the months ahead. One proposal with support from a number of lawmakers is the Border Adjustment Tax, which would raise federal taxes by more than $1 trillion over the next 10 years, according to estimates.
Daniel Garza, President for The LIBRE Initiative, released the following statement:
“Tax reform and simplification are important goals, and lawmakers in Washington should work to simplify the current system. More than 70 percent of Americans believe the U.S. economic system is rigged. It’s time to stop using the tax code to reward special interests, and make the system flatter, fairer, and more transparent. Reforming the tax code and reducing the tax burden can help encourage economic growth, while allowing workers to keep more of what they earn.
At the same time, policymakers should reject proposals such as the Border Adjustment Tax, which would impose significant new costs on consumers nationwide. Instead of helping our economy, it would hamper economic growth – and even some of its proponents concede it isn’t necessary for good, economy-boosting tax reform. At a time when policymakers are focused on how to reduce the tax burden, it takes us in exactly the wrong direction.”