For millions of Americans across the country, summer is officially in full swing. School is out, the pool floats are in, and temperatures are rising. But as the country sets out to enjoy the sun-filled season, Congress is readying to turn up the heat even more on consumers.
As we all know, our country has a once in a lifetime opportunity to enact meaningful, comprehensive tax reform in this Congress. And retailers want nothing more than to see legislation that broadens the tax base and levels the playing field for the industry, which currently pays one of the highest effective tax rates of all sectors. However, with the current tax reform blueprint laid out by House Republican leadership, there's a shark in the water known as the border adjustable tax. This component of the plan would create a 20% import tax on businesses like retailers who rely on imports to provide consumers with the products they need at competitive prices.
Enacting the border adjustable tax, or BAT, would unfortunately force retailers to pass the extra cost on to consumers. That means extra strain on the family budget just for every day household items like fruit, gas, clothes, and more. That's why we've spent the last few months educating Congress on just how detrimental the BAT would be to the American economy, and we're spending the summer continuing to urge them to not let much-needed tax reform go off course by forcing the BAT on consumers.
Over the next few weeks, we'll be sharing more on how the border adjustable tax proposal would harm consumers as they celebrate the summer season. Stay tuned and for more information on RILA's efforts to promote sensible comprehensive tax reform, visit rila.org/BAT.
Week 2: Don't Let Tax Reform Go Off Course
Week 3: BAT is an Unwelcomed Guest at the Picnic