August 4, 2017
On July 27th, Republican leadership in Congress and the White House formally stepped down from pushing the Border Adjustment Tax. The BAT would have offered tax breaks to U.S. companies exporting goods overseas, but add a tax as high as 20 percent on imported goods.
The border adjustment provision was introduced to the U.S. House of Representatives earlier this year, designed to even out imbalances in money flows across borders and encourage domestic production by increasing the price of imports. During the Chamber’s visit to Mexico City this March, Jerry Sanders discussed the topic with Mayor Kevin Faulconer and Mayor of Tijuana, Juan Manuel Gastelum. He further predicted the tax would be difficult to pass given the presence of Border States who have both Republicans and Democrats “who understand the importance of trade”.
Jerry had also testified along with Congressman Scott Peters at a hearing on border economics, formally opposing the President’s Border Adjustment Tax. Congressman Peters stated that it is not necessary to choose between a safe border and one that facilitates prosperous international trade and tourism.