The proposed Border Adjustment Tax will negatively impact Americans if passed, Americans for Prosperity (AFP) recently said.
“For the first time in more than 30 years, federal lawmakers have an opportunity for comprehensive tax reform that can improve the lives of all Americans," the April 6 AFP announcement read. "But the chance to deliver a simpler, fairer tax code is threatened by a proposed Border Adjustment Tax (BAT) that would impose a new 20 percent tax on everything that’s imported into the U.S.—from tennis shoes and t-shirts, to crude oil and auto parts."
Supporters of the BAT claim that it would have a positive effect on American manufacturing, but AFP says that is not the case.
“With the BAT acting as a new blanket tax on all imported goods, the study shows that every state would suffer under this regressive tax hike, while states whose economies rely heavily on manufacturing and retail would be hit hardest,” AFP said.
A study revealed Michigan would be among the states most negatively impacted by BAT.
“AFP’s study shows the BAT would be devastating for domestic automakers that rely on an integrated supply chain for components and vehicles made in the U.S," the announcement continued. "Raw materials and components for cars can cross the border repeatedly before being assembled at an American factory, meaning these supplies could potentially be taxed at every crossing with the BAT.”
AFP urges lawmakers to consider each state individually and how this tax will hurt their residents.