The Truth about the Border Adjustment Tax
The U.S. House Republican tax reform proposal includes a recommendation to adopt a Border Adjustment Tax (BAT). If it passes in any form, it will increase the cost of promotional products significantly. The BAT will have a negative overall impact to the promotional products industry.
You must start learning about BAT, and how it is going to affect your business and the overall U.S. economy. Most importers are highly concerned about this potential tax as nearly every imported item will increase in price. Since the majority of items sold in our industry are imported, the price of goods will increase dramatically for all non-U.S. made products.
Of course, once imported products make it to the U.S., nearly all are decorated by U.S. workers. They are sold by U.S. workers. They are used to promote U.S. goods and services. This proposal would impose taxes on these products that will put many small businesses at risk—many within our industry.
Congress should absolutely look for ways to reform our complicated tax code, but new taxes, as part of tax reform, are not the right way to create jobs, spur economic growth, or help put more money in the pockets of American workers.
You must learn more about this tax and how it will impact our industry. I personally reject the border adjustment tax, and will encourage my elected officials to focus on implementing tax reform that protects current jobs and creates new ones.
I will continue to share my thoughts with you in the coming months as we learn more. In addition, PPAI is part of a coalition called Americans for Affordable Products. Learn more here. Once you learn more, take action and talk to your elected officials so they can see the significant impact to small businesses across America.
To take action now, click here.