New Report on Border Adjustment Tax Shows Danger to Economy
Significant Impact on Latino Jobs with Higher Prices, Slower Economic Growth
(Washington. D.C.) – According to a report released by Americans for Prosperity and Freedom Partners, the proposed Border Adjustment Tax (BAT) would do significant harm to industries such as manufacturing, energy, retail, financial services, and agriculture – which together employ over 7 million Latinos – more than a quarter of the Latino workforce in the U.S. These industries rely heavily on imported goods and would be disproportionately harmed by a 20-percent tax on imports. The report indicates that because American manufacturers rely on imports to complete finished products, they could face an additional $67 billion in taxes under this new tax. Every American would feel the effect of a higher cost on energy, with gas prices increasing by 30 to 40 cents per gallon. Retailers who rely on imports would see their bills soar, and agriculture would face billions in new taxes, as well as the possibility of retaliation by trading partners.
Jorge A. Lima, Executive Director of The LIBRE Initiative, released the following statement:
“There’s no doubt that tax reform is badly needed to spark our economy, and holds great potential to grow jobs and boost wages. Simplifying and reducing the tax burden is the right thing to do, and it has been more than 30 years since Congress and the president came together to update our tax laws. We strongly support such efforts.
But at the same time, it’s clear that the Border Adjustment Tax can only hurt economic opportunity, as well as families and workers. Latinos understand that a massive tax increase on consumers isn’t real tax reform – that’s why they oppose the proposal. As Congress comes together on real tax reform, they should reject the Border Adjustment Tax – which will hurt job creation and stifle wage growth.”