So, while we are busy paying attention to the antics of Milo Yiannopoulos and Donald Trump, riots that did not happen but then did happen in Sweden, and the Media’s Big Ol’ Meltdowns, major corporations are pushing Congress to pass a tax that benefits them and hurts you.
If you’ll recall, the Ex-Im Bank was arguably the biggest source of corporate welfare there is, and it was finally allowed to expire without renewal in Congress. Right now, there are rumors swirling that Trump is looking at a potential revival of the Ex-Im Bank, and the corporations that spent huge amounts of money looking for handouts from the bank are now pushing for a border adjustable tax (BAT).
This tax is simply not good for retailers or taxpayers.
See, the tax is raised not on where the goods are produced, but where they are consumed. This means that, in order to cover the tax and make sure they can make a profit and stay in business, retailers will have to raise prices on imported goods, thereby causing you to pay more.
What’s really sketchy here is that many of the major companies who are pushing this tax are ones who don’t pay taxes themselves. Many of these corporations also produce their goods in the U.S., so they have the advantage of getting products on the market without increases prices, while any competition that produces goods overseas will.
It may seem like a good idea to reward American-made goods, but then you have to consider all of the products made overseas that do not have an American-made equivalent. You’re looking at a great many goods that American citizens will have to pay a lot more for.
Word is that Speaker Paul Ryan is really looking for a lot of grassroots support in passing comprehensive tax reform – and to be fair, there are good proposals he is backing – while Trump is in office. However, if Ryan’s plans include a BAT, then I hope the grassroots activists and the voters do the right thing and raise all sorts of hell.
A BAT is little more than a plan to aid the biggest donors in Congress, and it does nothing expect to help an American economy which, at this time, is strengthening but still struggling.
I hope the Speaker does the right thing here.