Rep. Kevin Brady touts border adjustment tax at CPAC

House Ways and Means Committee Chairman Kevin Brady on Friday touted congressional Republicans’ proposal to impose a new tax on imports, as President Trump sent signals he could now be open to such a move.

“We’re going to end the tax on ‘made in America,’” Mr. Brady said at the Conservative Political Action Conference.

Proponents have given the proposal that nickname because foreign-made products sold in the U.S. face a lower tax burden than American-made products.

“None of our foreign competitors taxes this way,” he said.

The GOP’s plan for a so-called border adjustment tax would impose a new tax on imports that would raise an estimated $1 trillion over a decade. Proponents say the move would level the playing field and encourage more production in the United States.

“Under our plan, all products sold in America will be taxed equally at a low, equal business rate regardless of where they’re made,” Mr. Brady said.

But opponents say the new tax will ultimately get passed down to consumers, and the matter has led to an intense behind-the-scenes battle within the GOP on Capitol Hill. Without the revenue stream generated by the new tax, offsetting other tax breaks in Republicans’ broader overhaul proposal gets more difficult.

President Trump has sent mixed signals on the idea, but told Reuters this week that the proposal “could lead to a lot more jobs in the United States.”

Please enable JavaScript to view the comments powered by Disqus.

blog comments powered by

%d bloggers like this: