tag:blogger.com,1999:blog-10264393723562038832024-03-08T18:17:25.869-06:00Border Adjustment Tax - Comments and ObservationsA running commentary on the proposed 2017 House Republican Federal Tax Plan with a special focus on the impact on Small Business.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.comBlogger126125tag:blogger.com,1999:blog-1026439372356203883.post-75608972048974958762017-07-27T14:14:00.001-05:002017-07-27T14:14:42.255-05:00It's not your imagination - The Border Adjustment Tax is DEAD!!! Yahoo!<span style="font-family: Arial, Helvetica, sans-serif;">Read the joint statement <a href="https://www.whitehouse.gov/the-press-office/2017/07/27/joint-statement-tax-reform">here</a> (published by the White House). </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">In pertinent part, it says:</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">"<i>And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base. While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.</i>" </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">In other words, it's dead and it's gone, not to return.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><a href="https://www.washingtonpost.com/news/wonk/wp/2017/07/27/paul-ryan-admits-defeat-giving-up-on-border-adjustment-tax/?utm_term=.ef4536ccffaa"><br /></a></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><a href="https://www.washingtonpost.com/news/wonk/wp/2017/07/27/paul-ryan-admits-defeat-giving-up-on-border-adjustment-tax/?utm_term=.ef4536ccffaa">The Washington Post</a> says it clearly - it's a concession of defeat by Ryan and Brady. </span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Let's hear it for rationality!</span>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-13647229112146035102017-07-27T13:13:00.001-05:002017-07-27T13:13:09.266-05:00Rumorville - BAT to finally bite the dust - today?In an article published today on Politico Pro, Chris Wilhelm quotes two unnamed White House sources (Scaramucci? Priibus?) with "knowledge of the matter" who state that a unified tax reform agenda to be published later today will formally drop the noxious Border Adjustment Tax. The unified agenda is said to reflect the combined views of tax reform of the White House and congressional leaders.<br />
<br />
Stay tuned!Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-28103463607859809022017-07-19T17:53:00.000-05:002017-07-19T17:53:37.726-05:00Ways and Means Tax Subcommittee Hearing today - Roskam Calls for Bipartisan ApproachNo apparent discussion of the BAT.<br />
<br />
<br />
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/jpP_xJ5aojo" width="560"></iframe>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com4tag:blogger.com,1999:blog-1026439372356203883.post-3058910971727075342017-07-17T22:55:00.000-05:002017-07-17T22:55:11.031-05:00Obamacare Legislation Collapses in Senate. The Republicans can't Govern.Not sure why I still worry about the BAT. There is zero indication that the Senate would ever go for it, and even more to the point, the Republicans have nearly proven mathematically that they are unable to govern. Who knew?<br />
<br />
Well, I have predicted that the Republicans would fracture, and they have. What I have not been able to foresee is the Ryan/Brady political suicide pact to stick with the loathsome BAT until death do them part. And that seems to be where they're at, despite no semblance of a House majority much less a path through the Senate. All one needs to see is the healthcare debacle to know that the Republicans are all over the map on policy. No Democrat will rescue them, either. Bipartisanship under these circumstances is an absurd fantasy.<br />
<br />
This being said, we are still exposed to a sell out by someone. Even that seems hard to picture. As we daily march closer to Midterms and further from the Trumpian invective of the 2016 General Election, with his wild promises and wilder plans, the odds that any member of Congress will take their political future in their hands by voting for something as destabilizing as the BAT seems below zero. I just can't see it.<br />
<br />
Nevertheless, with Ryan and Brady clinging like grim death to this awful idea, we cannot let go. It could, somehow, rise from the dead with such powerful if unpersuasive advocates. When they say "no mas", I will consider the BAT dead, but until then, it's alive.<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-19670864781028772692017-07-06T23:26:00.003-05:002017-07-06T23:26:47.190-05:00When will the BAT go away, for good?There really hasn't been any substantive news on the BAT in the last couple weeks. Between North Korean missile launches, fake news twitter bombs and the stymied health care reform debacle, the issue seems to have gone on the back burner. Nevertheless, Brady and Ryan remains nominally committed to the idea, regardless of the sinking support for the initiative. Aside from those with a vested interest in the BAT proposal, namely Paul Ryan and Congressmen who have thrown their lot in with him to gain power (Brady, Nunes, Roskam, etc.), no one seems to have even mild enthusiasm for the proposal.<br />
<br />
Without the votes, Ryan and Brady face worse odds on tax reform than even killing off Obamacare. The likely debacle of healthcare legislation makes tax reform less likely by the day. <a href="https://www.bna.com/border-tax-negotiating-n73014461247/">Some, like Bloomberg</a>, are saying that Ryan and Brady are saving it as a bargaining chip for later. That may be true, but a bargaining chip is only valuable if it is credible. In this case, the BAT is full of holes. I don't see what it is worth as a bargaining chip. The behavior of leadership is baffling and frustrating. No one knows why they won't give up the ghost.<br />
<br />
Interestingly, the toll taken on the Republican brand by Mr. Trump and his shenanigans is becoming quite clear. <a href="https://www.wsj.com/articles/gop-scrambles-to-recruit-senate-candidates-1499296783">The WSJ notes</a> that Republicans are striking out in getting volunteers to run against incumbent Democrats in Senate races in states where Trump won big. To me, this is predictive of the continuing stalemate and maelstrom that is Congressional action by Republicans. The debasement of the Republican brand makes it hazardous to follow leadership, either Congressional leadership (Brady and Ryan) or the White House. Notably, Rep. Pat Tiberi is mentioned by the WSJ as declining to run against Sherrod Brown. That's quite interesting, given that he is one of the Republicans on Ways and Means who have spoken publicly about his problems with the BAT. So here's a Congressman who is definitely sticking around and is nevertheless publicly poking Ryan and Brady in the eye. <br />
<br />
So why can't Ryan and Brady keep the Republicans in line? Any number of reasons, but I believe it's all about incentives. There is little incentive to fall in line. How can leadership reward "good" behavior? How can leadership discipline Republicans who won't play ball? Again, no answer. The White House has not demonstrated that it has the power to enforce either. The wins in by-elections this year have all occurred in very safe districts that the Republicans struggled to hold. Without a way to keep folks in line, in an environment dominated by a President who is alienating everyone, it is hard to picture Ryan and Brady holding a cohesive and trustworthy majority together for hardly anything, much less radical tax reform.<br />
<br />
So we must continue to wait and watch. Fortunately, the admirable Americans for Affordable Products continues to pummel the BAT on a daily basis. Thank heavens for them. We will prevail in due course, but it may take time before an acknowledged victory can be declared.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com1tag:blogger.com,1999:blog-1026439372356203883.post-87610231499054761722017-06-20T08:14:00.001-05:002017-06-20T08:14:48.004-05:00Ryan Speech on Tax Reform Said to Not Reference the BATCNBC reports today (at 5.22 in the below video) that Paul Ryan makes no reference to the Border Adjustment Tax in <a href="https://www.wsj.com/articles/ryan-talks-up-likelihood-of-tax-overhaul-1497931260">his pending speech on tax reform</a>. Treasury Secretary Mnuchin did not rebut this assertion. If true, this is a major shift from Mr. Ryan. Is the end near???<br />
<br />
<br />
<iframe allowfullscreen="true" bgcolor="#131313" height="298" src="http://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=3000629055&size=530_298" type="application/x-shockwave-flash" width="530"></iframe><br />
<br />
Mnuchin speaks in the same interview about the need to implement a territorial tax system. Please NOTE that we can have a territorial system without having a VAT or a BAT. Territorial tax systems and the Border Adjustment Tax are not synonymous. Mnuchin is saying that he does not want to tax income earned offshore, and thus wants to open the door to repatriation of foreign earnings on some basis.<br />
<br />
I have previously reported rumors that a hybrid system will be proposed wherein foreign earnings are taxed at a lower level to replace the BAT. This plan would match (minimally) what Mnuchin is claiming. <br />
<br />
Stay tuned!Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com5tag:blogger.com,1999:blog-1026439372356203883.post-17885677733257170962017-06-13T22:31:00.000-05:002017-06-13T22:31:31.623-05:00Brady Proposes a Five-Year Phase-In of the BATThe picture of stubbornness, <a href="https://www.wsj.com/articles/gop-lawmaker-floats-5-year-phase-in-of-border-adjustment-tax-1497367997">Kevin Brady today proposed</a> a five-year phase-in of the BAT to "address" the transition issues of the BAT. He proposes to phase the tax in 20% a year, with 20% of imported COGS included in taxable income in year one, 40% in year two, etc. I am assuming everything else in the plan remains the same.<br />
<br />
A quick examination of our company's actual 2016 results modeled against the Blueprint show the following tax bill based on pre-Blueprint Net taxable income (we pay 43.6% now):<br />
<br />
Year One: 14.2%<br />
[Lower than the projected Federal rate of 25% because of exports and other adjustments]<br />
Year Two: 51.8%<br />
Year Three: 89.5%<br />
Year Four: 127.2%<br />
year Five: 164.9%<br />
<br />
Does that look appealing to you? So we'll live two extra years, but will face a tax-induced cash squeeze beginning in year two. That's when we start raising prices. Do you like inflation?<br />
<br />
This proposal presumes you would prefer to slowly be asphyxiated rather than shot through the heart.<br />
<br />
Other relevant points that expose the thin thinking of Mr. Brady:<br />
<br />
a. <b><u>No proof that the Dollar will save us</u></b>. This proposal ignores the FACT that no one can attest to the direction of the dollar. The premise of this scheme is that the skyrocketing dollar will protect everyone from inflation. There is zero reason to believe this, and no one would take the bait at the May 23rd hearing, either.<br />
<br />
<br />
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/2XkksOsKzIs" width="560"></iframe>
<br />
<br />
Mr. Brady thinks we're napping here.<br />
<br />
b. <b><u>Foreign-sourced content in goods made overseas will make costs RISE</u></b>. The content or components imported by foreign manufacturers will rise in cost even as costs for locally-sourced content will fall under this scheme. We believe a rising dollar ELEVATES our import costs. <br />
<br />
c. <b><u>The phase-in of the BAT only enhances the probability of WTO lawsuits and retaliation</u></b>. The illegality of the scheme isn't changed by Mr. Brady's proposal, and the delay in implementing it will only give our trading partners more time to organize to sink us.<br />
<br />
d. <b><u>Trade wars with critical trading partners will almost certainly be sparked.</u></b> The handouts to U.S. exporters, which cannot be compared to the so-called border adjustment in VAT jurisdictions, will almost immediately lead to retaliation by big trading partners. The BAT will quickly make U.S. companies a more volatile customer base for foreign manufacturers, intensifying the urge to retaliate.<br />
<br />
e. <b><u>A revenue-neutral "tax cut" is not a tax cut, it is a reallocation of tax burden.</u></b> The government still intends to kill importers, but is content to do it over time. The proposal does not address the fact that 97% of importers are small businesses. This phase-in only spreads the pain of the shifting tax burden over a few years before it kills all importers or sparks an inflationary firestorm. Every other outcome is PURE speculation.<br />
<br />
f. <b><u>Turnarounds will still die under the revised BAT proposal.</u></b> Weak importers will still see taxable income miraculously appear, even in year one. Think about all the retailers struggling to stay alive right now. Gymboree went bankrupt this week, and retailer Ascena said they would close 600 Dress Barn, Ann Taylor and Lane Bryant stores. Money-losing importers have taxable income when COGS is added back to their losses. So they will owe taxes in losing years. Close more stores so you can pay Mr. Brady!<br />
<br />
g. <u><b>VAT systems still don't prejudice U.S. manufacturers.</b></u> This fact is well-known but Brady prefers to keep lying to preserve his faulty plan.<br />
<br />
If the BAT was rejected by thoughtful Members of Congress, so will BAT 2.0. Give up, Mr. Ryan and Mr. Brady. You will either lose your vote or lose your jobs. This is the wrong place to draw a line in the sand.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com2tag:blogger.com,1999:blog-1026439372356203883.post-79422858584777111252017-06-12T23:53:00.002-05:002017-06-12T23:53:35.077-05:00The Last Days of the BAT???Wither the Border Adjustment Tax? Wither indeed.<br />
<br />
As noted in this space several times, and fairly obvious to everyone following this issue closely except for two people, the Border Adjustment Tax proposal is nearing its just demise. There is nowhere to turn, and only a concession by Ryan and Brady stands between us and rationality.<br />
<br />
On June 9th, Rep. Jim Jordan published an Op-Ed in The Washington Examiner entitled "<a href="http://www.washingtonexaminer.com/rep-jim-jordan-america-first-tax-reform-begins-with-dismissing-a-border-adjustment-tax/article/2625266">America-first tax reform begins with dismissing a border adjustment tax</a>". This article is being seen as the official position of the Freedom Caucus, an independent group of 30 or more Republican members of Congress (the exact list is not known). You may recall that the Freedom Caucus did a lot of damage to Paul Ryan's efforts to repeal Obamacare. They tend to vote as a bloc. This means there are officially more than 30 "no" votes out there, plus others who have stated a negative position. On Ways and Means alone, Reps. Paulsen, Tiberi, Renacci and Kelly have all publicly stated opposition or very strong concerns. The path to law in the House is dead. <br />
<br />
And in the Senate, no realistic tax reform fantasy can include "turning" the BAT opposition of Senators Cotton, Graham and Perdue into "yeses". So it's not getting through the Senate.<br />
<br />
As predicted many times in this space, the power vacuum of Trump/Ryan is encouraging more Republicans to chart their own course. The prediction was a gradual breakdown of the Republican pack with defectors leading to more defectors. The approach of Midterms has only hastened this process.<br />
<br />
Are the House Republicans so dense that they can't see that the BAT stands between them and tax reform? Happily, I can say with confidence that they aren't that dense. In fact, they are starting to speak about it, out loud even. <a href="https://www.wsj.com/articles/republicans-push-paul-ryan-to-back-off-border-tax-idea-1497030619">The WSJ reports</a> that pressure is finally being applied UP by House Republicans against Ryan and Brady to ditch their pet idea and move toward something more realistic and likely to be the basis of a new tax law. My conversations with folks on the Hill confirms that conversations are being had, and the obvious being stated aloud for the right ears to hear. There are even signs that these pleas are being heard. You never heard me say that before.<br />
<br />
Sadly, the real problem is that Ryan won't accept a plan unless it's revenue-neutral. This is quite unfortunate, and may result in his political downfall if he doesn't give up the ghost. "Revenue-neutral" is when a tax cut isn't a tax cut, but only burden shifting among taxpayers. The correct approach is deficit-neutral, namely reducing tax revenues being matched by reduced governmental expenditures. Oddly, in a town where advocating the devastation of health care for millions seems to be just fine (explain that to me, please), no one in Washington will speak of attacking other larger entitlements, even if done in a fair and forward-looking manner. Those plans exist and will not endanger Seniors. <br />
<br />
If Ryan won't consider deficit-neutral, there is little hope for tax reform. It is hard to believe that Congress will be irresponsibly cut taxes without cutting expenses, leading to spirally deficits we may not survive. We are already looking too much like Greece and can't afford to make the comparison even more direct.<br />
<br />
This is coming to a head, finally, and we should see news, important news, soon. Keep your eyes peeled. Help may be on the way.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-9137315969898633312017-06-08T21:49:00.002-05:002017-06-08T21:49:39.523-05:00Border Adjustment Tax Seems Impossible But Remains on Life SupportDespite holding a hearing May 23rd that built a strong record against the BAT, and which provided an opportunity for Republicans to openly oppose the plan, Brady and Ryan continue to coyly hold fast to their insistence on the BAT. As noted in <a href="https://www.bloomberg.com/politics/articles/2017-06-07/ryan-s-affection-for-his-own-plan-leaves-tax-measure-in-limbo">Bloomberg this week</a>, this stubbornness is putting tax reform in doubt. <br />
<br />
The pat explanation - that Ryan is a "wonk" - does not ring true to me. Ryan is bright and is an accomplished politician, to say the least. He is Speaker of the House and has been a Vice Presidential candidate. It is hard to dismiss him with condescension. So what is his gambit?<br />
<br />
It's a good question. <a href="http://www.rollcall.com/news/politics/analysis-border-adjustment-tax-dead-overhaul">Roll Call</a> counts 30 House Republicans who have expressed serious doubts or opposition to the plan, plus at least 18 Republican Senators. There is just NO WAY that this provision can pass out of Congress over that obstacle given the likelihood that the tax bill will get zero Democratic votes, and the more Members of Congress come out against the BAT, the safer it is for others to go public with their reservations. This headcount of Republican resistance is a major degradation of where Brady and Ryan were just weeks ago. The well-financed and supremely well-organized <a href="https://keepamericaaffordable.com/">Americans for Affordable Products</a> coalition is providing unrelenting and effective resistance to the BAT, keeping the headlines and Op-Eds flowing. The pressure will not relent. I do not see a credible plan to raise the BAT from the dead.<br />
<br />
That said, <a href="http://thehill.com/policy/finance/336707-hatch-doesnt-rule-out-border-adjustment-tax">The Hill</a> reports that Senator Orrin Hatch, the Chairman of the Senate Finance Committee, doesn't rule it out. He previously said that he had "<a href="https://www.msn.com/en-us/money/markets/sen-hatch-i-have-real-reservations-on-border-adjustment-tax/vi-AAnEe7y">real reservations</a>" about the plan and knows well that he lacks the necessary votes given the strong opposition of several Senators who are unlikely to come back to the fold (Perdue, Cotton and Graham). Notably, the White House has also stated its opposition to the BAT. This appears to leave little room for a Second Coming.<br />
<br />
While it seems like a good guess that the BAT is being saved as a "trade" later, even that seems far fetched because you can't get much value for something has no value. Ryan and Brady lack credibility when it comes to forcing the plan into law, and thus have little leverage in a trade.<br />
<br />
This all seems like politics, and that's the worry. Hatch's warning that the BAT could spring back to life is the Doomsday scenario - a back room sellout at the last minute, out of public view. While this in the nightmare, it seems less and less likely as the machinery of Midterms are coming on fast. Notably, today's election results in the U.K. hint that the worldwide fever that propelled people like Trump into office is passing fast. Supporting something as drastic and reckless as the BAT gets more politically hazardous every day. And the delay in passing any portion of the Trump agenda means that whatever anger it would or will engender has less and less time to pass. It all adds up to voter anger. And as everyone knows, there are (many) other reasons for voter anger at the polls in 2018. Not a pretty picture for Republican prospects in 2018.<br />
<br />
If the Republicans have any hope of demonstrating they are able to govern, they will need to drop the BAT and move on to something else soon, long before the 2018 Midterms. The BAT has to go, but the decision to kill it rests with Ryan and to a lesser extent, Brady. Stand by but please keep the pressure on. They need to feel the heat every day until they cave.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com1tag:blogger.com,1999:blog-1026439372356203883.post-84812622501349050762017-05-30T23:51:00.003-05:002017-05-30T23:51:53.887-05:00Border Adjustment Tax - So Where Are We?It's tempting after last week's hearing to declare the BAT dead. The hearing featured some very damaging testimony, and if you think that actually matters, it is hard to see how House Republicans could muster a vote in favor of the BAT with that testimony available for midterm election commercials. In choosing to have this hearing, the Republicans built the record against their own (stupid) idea. This hearing certainly didn't convince any wavering Senators to come over to the Dark Side.<br />
<br />
Among the hearing highlights were:<br />
<br />
a. The <a href="http://www.borderadjustmenttax.com/2017/05/can-anyone-assure-us-that-currency.html">previously posted question</a> by Rep. Jim Renacci about assurance that the dollar will adjust as predicted. The rogue's gallery of Republican witnesses would not give that assurance. Brian Cornell, CEO of Target, helpfully openly admitted that no such assurance was possible. [Cornell was a star in the hearing.] This question (by a Republican Congressman) crushed the Brady currency argument, and shamed the august economists who have been making unsupportable promises about the dollar saving the day for the BAT. Smug economists have treated us all like idiots for months, but when push came to shove, no one was willing to stand up in defense of the ridiculous theory. Notably, Democratic witness and economist Kimberly Clausing of Reed College pointed out that in 75% of the cases where a country with a floating exchange rate adopted a VAT, the currency moved the wrong direction. Oops!<br />
<br />
b. Most of the Republican witnesses persisted in their "correlation is causation" arguments, which rang hollow in large part because they made no sense. The consistent theme was the simpleminded assertion that (name your economic gripe) was created by the "broken" tax system. Even Lawrence Lindsey was prone to this hyperbole. The CEO of ADM even asserted that declining sales of his commodities was due to our tax system. He should be embarrassed for stooping this low.<br />
<br />
c. Devin Nunes continued to parrot the party line (as did Peter Roskam, the other Brady attack dog at the hearing). In this case, he repeated the nonsensical observation that "Iraq, Syria, North Korea and Mali" don't have VATs, hence we're nuts to not grab the VAT idea while we can. Among the objections raised to this "insight" was the fact that the BAT is not a VAT, and no conclusions can therefore be reached by Nunes' absurd oibservation. Rep. Doggett pointed to the esteemed economies of Estonia and Latvia which have VATs but have not shown great growth. This counter-argument seemed to have as much impact of Nunes'.<br />
<br />
d. Rep. Sanford Levin made some very strong points, such as the fact that we have lost WTO cases in the past that relate to proposed taxes like the BAT. He also took issue with the notion that economic ills are directly traceable to tax systems, pointing to labor arbitrage as a big driver of moving jobs overseas.<br />
<br />
Duh.<br />
<br />
He also noted that everyone pays corporate income tax in their home country, hence an actual level playing field. <br />
<br />
e. Although no one took on the tedious mathematics of VATs, the urban myth of profiting from border adjustments was repeated but with little impact.<br />
<br />
Notably, Rep. Erik Paulsen came out explicitly against the BAT. With Rep. Kelly and Renacci on record against it, the Republican "no" votes on this bill seem to make it impossible to move forward. Paulsen's move seems particularly portentous, so much so that it suggests that Brady and Ryan were trying to set up a shift in position through Paulsen. I say this because Paulsen is a very close associate of Brady, and one wonders how Paulsen could take such a contrary and embarrassing position right in front of his patron and friend if it were not cleared in advance. And if he did clear his plan with Brady, then Brady may finally be ready to trade this awful proposal away.<br />
<br />
The question is when. Given the chaos in the White House and disarray on several fronts in Congress owing to many factors, including the distraction of meltdown in the Trump agenda, Brady is said to be unsure of what happens next. He is rumored to hold the BAT as a fallback position when nothing else works. I wonder if this is credible in any way after this hearing. In my opinion, he can't overcome the record now.<br />
<br />
Other rumors suggest that Brady and Ryan are prepared to trade the BAT for a modified territorial tax system wherein foreign profits would taxed at lower levels than today, but not at zero. This would raise replacement revenue in some amount to replace the prospect of the BAT revenues. A modified territorial system would be better than nothing at all, and no business would suffer at the relaxing of this tax (the savings are less than a total removal of the tax, but something is better than nothing, right?).<br />
<br />
As long as Brady and Ryan are prepared to sustain the notion that the BAT has a chance of becoming law, we cannot give up our opposition. That said, it seems like it's just a matter of time now. Let's keep pushing and hopefully, Brady and Ryan will eventually concede that there have better things to do with their time than push for this terrible tax.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-66398874243853942322017-05-25T21:57:00.001-05:002017-05-25T21:57:09.849-05:00Border Adjustment Tax Clips - May 25, 2017<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Bloomberg:<span style="font-weight: normal;"> </span><a href="https://www.bloomberg.com/news/videos/2017-05-25/former-ex-im-chairman-says-border-tax-not-happening-video"><span style="font-weight: normal;">Former Ex-Im Chairman Says Border
Tax Not Happening</span></a><span style="font-weight: normal;"> 5-25-17</span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Foreign
Affairs:<span style="font-weight: normal;"> </span><a href="https://www.foreignaffairs.com/articles/2017-05-24/tale-two-tax-plans"><span style="font-weight: normal;">A Tale of Two Tax Plans</span></a><span style="font-weight: normal;"> 5-24-17</span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">The Hill:<span style="font-weight: normal;"> </span><span style="font-weight: normal;"><a href="http://thehill.com/homenews/house/335038-border-adjustment-tax-proposal-at-deaths-door">Border-adjustment
tax proposal at death’s door </a></span><span style="font-weight: normal;"> 5-24-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Vox:<span style="font-weight: normal;"> <span style="color: #4c4e4d;"><a href="https://www.vox.com/policy-and-politics/2017/5/24/15680254/republicans-border-adjustment-tax">Nobody
likes the border adjustment tax — except the House Republicans who won't let it
go</a></span> 5-24-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">EPR Retail
News: <span style="font-weight: normal;"><a href="http://eprretailnews.com/2017/05/24/rilas-jennifer-safavian-the-border-adjustment-tax-would-jeopardize-42-million-jobs-retailers-currently-support-78377474/">The
Border Adjustment Tax Would Jeopardize 42 Million Jobs Retailers Currently Support<span style="mso-bidi-font-weight: normal; text-transform: uppercase;"> </span></a></span><span style="font-weight: normal; text-transform: uppercase;"> 5-24-17</span><o:p></o:p></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Fox Business:
<span style="font-weight: normal;"> </span><span class="watch-title"><span lang="EN" style="font-weight: normal;"><a href="https://www.youtube.com/watch?v=TgV4dhOJsa8&feature=youtu.be">Sen.
Toomey: "Going to end up without having much of a [BAT]"<b> </b></a></span></span><span style="font-weight: normal;"> 5-24-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Bloomberg:<span style="font-weight: normal;"> </span><span class="lede-text-onlyhighlight1"><span style="font-weight: normal;"><a href="https://www.bloomberg.com/politics/articles/2017-05-24/ryan-isn-t-folding-on-border-tax-but-says-he-s-talking-about-it">Ryan
Isn't Folding on Border Tax, Says He's Talking About It </a></span></span><span style="font-weight: normal;"> 5-24-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Bloomberg:<span style="font-weight: normal;"> </span><a href="https://www.bloomberg.com/politics/articles/2017-05-24/mnuchin-tells-democrats-no-go-on-border-tax-in-private-meeting"><span style="background: white; font-weight: normal;">Mnuchin Tells
Democrats No Go on Border Tax in Private Meeting</span></a><span class="lede-text-onlyhighlight1"><span style="font-weight: normal;"> 5-24-17</span></span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Axios:<span style="font-weight: normal;"> </span><span class="watch-title"><span lang="EN" style="font-weight: normal;"><a href="https://www.youtube.com/watch?v=EphDTlFDlJA&feature=youtu.be">Speaker
Ryan on if Tax Reform Is possible w/o BAT: "Of Course"</a></span></span><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Washington
Free Beacon: <a href="http://freebeacon.com/issues/some-businesses-oppose-border-adjustment-tax/"><span style="font-weight: normal;">Business Owners Tout Tax Reform but Some Oppose
Border-Adjustment Tax</span></a><span style="font-weight: normal;"> 5-24-17</span><o:p></o:p></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Fox Business<span style="font-weight: normal;">: </span><span lang="EN" style="font-weight: normal;"><a href="http://www.foxbusiness.com/features/2017/05/23/house-gop-tries-to-keep-border-adjusted-tax-alive.html">House
GOP Tries to Keep Border-Adjusted Tax Alive</a> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span lang="EN">Politico</span><span lang="EN" style="font-weight: normal;">: </span><span style="font-weight: normal;"><a href="http://www.politico.com/story/2017/05/23/steven-mnuchin-criticize-house-tax-reform-238726">Central
pillar of House tax reform plan draws friendly fire </a> 5-23-17</span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">Bloomberg:</span><span class="watch-title"><span style="font-weight: normal;"> </span></span><a href="https://www.bloomberg.com/politics/articles/2017-05-23/house-chief-tax-writer-signals-openness-to-gop-plan-alternatives"><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">Mnuchin Cites Border-Tax Concern as House Panel Seeks Tweaks</span></a><span class="watch-title"><span style="font-weight: normal;">
5-23-17<o:p></o:p></span></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">TheStreet</span><span class="watch-title"><span style="font-weight: normal;">: </span></span><span lang="EN" style="font-weight: normal;"><a href="https://www.thestreet.com/story/14147329/1/mnuchin-puts-kibosh-on-border-tax-as-house-debates-measure.html?puc=twitter&cm_ven=TWITTER&utm_source=dlvr.it&utm_medium=twitter3">Mnuchin
Puts Kibosh on Border Tax as House Debates Measure</a></span><span class="watch-title"><span lang="EN" style="font-weight: normal;"> </span></span><span class="watch-title"><span style="font-weight: normal;">5-23-17</span></span><span class="watch-title"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">The Hill:</span><span class="watch-title"><span style="font-weight: normal;"> </span></span><a href="http://thehill.com/policy/finance/334780-hearing-highlights-gop-divide-over-border-tax"><span style="font-weight: normal;">Hearing
highlights GOP divide over border tax</span></a><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Star-Telegram<span style="font-weight: normal;">: </span><span lang="EN" style="font-weight: normal;"><a href="http://www.star-telegram.com/news/politics-government/article152124277.html">Target
CEO tells Congress that GOP’s proposed import tax would hurt his customers </a> 5-23-17</span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">NY Times:<span style="font-weight: normal;"> </span><a href="https://www.nytimes.com/2017/05/23/us/politics/border-taxs-apparent-demise-jeopardizes-gop-overhaul-plan.html?_r=0"><span style="font-weight: normal;">Border Tax’s Apparent Demise Jeopardizes G.O.P. Overhaul Plan</span></a><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Washington
Post:<span style="font-weight: normal;"> </span><a href="https://www.washingtonpost.com/news/business/wp/2017/05/23/house-committee-to-hear-clashing-views-on-the-impact-of-a-border-adjustment-tax/?utm_term=.5ab551a593db"><span style="font-weight: normal;">GOP divisions grow over proposal
for a border adjustment tax</span></a><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Bloomberg<span style="font-weight: normal;">: <a href="https://www.bloomberg.com/news/videos/2017-05-23/target-ceo-border-tax-could-hurt-american-families-video">Target
CEO Says Border Tax Could Hurt American Families</a> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">WSJ:<span style="font-weight: normal;"> </span><a href="https://www.wsj.com/articles/house-gop-tries-to-keep-border-adjusted-tax-alive-1495556670"><span style="font-weight: normal;">House GOP Tries to Keep
Border-Adjusted Tax Alive</span></a><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Politico:<span style="font-weight: normal;"> </span><a href="http://www.politico.com/story/2017/05/23/steven-mnuchin-criticize-house-tax-reform-238726"><span style="font-weight: normal;">Central pillar of House tax reform plan draws friendly fire</span></a><span style="font-weight: normal;"> 5-23-17<span class="watch-title"><o:p></o:p></span></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">The Dallas Morning News:<span style="font-weight: normal;"> </span><span lang="EN" style="font-weight: normal;"><a href="file:///C:/Users/Home/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.IE5/WZN1TALW/House%20GOP%20tries%20to%20rally%20support%20for%20border%20tax%20proposal%20that's%20divided%20Texas'%20business%20community">House
GOP tries to rally support for border tax proposal that's divided Texas'
business community</a> </span><span lang="EN" style="font-weight: normal;"> </span><span style="font-weight: normal;">5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Tampa Bay Business Journal:<span style="font-weight: normal;"> </span><span style="color: #222222; font-weight: normal;"><a href="http://www.bizjournals.com/tampabay/news/2017/05/23/target-bealls-other-retailers-speak-out-against.html">Target,
Beall's, other retailers speak out against border tax</a></span><span style="font-weight: normal;"> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Washington Examiner:<span style="font-weight: normal;"> </span><span style="font-weight: normal;"><a href="http://www.washingtontimes.com/news/2017/may/23/kevin-brady-touts-border-tax-true-competition-firs/">Border
adjustment tax proponents struggle to prevent more Republican defections</a></span> <span style="font-weight: normal;">5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Morning Consult:<span style="font-weight: normal;"> <span style="color: #2b2b2b;"><a href="https://morningconsult.com/2017/05/23/challenges-facing-border-tax-plan-display-ways-means-hearing/">Challenges
Facing Border Tax Plan on Display at Ways and Means Hearing</a></span> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">CNBC: <span style="font-weight: normal;"><a href="https://www.youtube.com/watch?v=vf7oVXpJiBI&feature=youtu.be">Mnuchin:
BAT Doesn’t Create Level Playing Field </a> 5-23-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">E&E News:<span style="color: #333333; font-weight: normal;"> </span><a href="https://www.eenews.net/eedaily/2017/05/22/stories/1060054874"><span style="font-weight: normal;">Lawmakers to debate border
adjustment plan</span></a><span style="font-weight: normal;"> 5-22-17
<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">US News & World Report<span style="font-weight: normal;">:
</span><span style="font-weight: normal;"><a href="https://www.usnews.com/news/articles/2017-05-22/with-heavy-retail-opposition-paul-ryans-border-adjustment-tax-faces-uphill-battle">Border
Adjustment Tax Faces Uphill Battle</a>
5-22-17</span><span style="font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Chron.com:<span style="font-weight: normal;"> </span><a href="http://www.chron.com/news/politics/article/Texas-businessman-and-friend-flies-to-DC-to-11164147.php"><span style="font-weight: normal;">Texas businessman (and friend)
flies to DC to oppose Kevin Brady's border tax plan</span></a><span style="font-weight: normal;">
5-22-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">The News
& Observer<span style="font-weight: normal;">:</span><span style="font-weight: normal; mso-bidi-font-weight: bold;"> </span><span lang="EN" style="font-weight: normal;"><a href="http://www.newsobserver.com/news/politics-government/article151561532.html">This
small business owner says he can’t survive a Republican plan to tax imports </a> 5-22-17</span><span lang="EN"><o:p></o:p></span></span></h1>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Fayetteville
Observer:</b> <a href="http://www.fayobserver.com/opinion/20170520/bo-biggs-border-tax-will-hurt-business-here">A
border tax will hurt business here</a><span style="color: #232323;"> 5-20-17<o:p></o:p></span></span></div>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Weekly Standard:<span style="font-weight: normal;"> </span><a href="http://www.weeklystandard.com/the-right-cure/article/2006776"><span style="font-weight: normal;">The Right Cure</span></a><span style="color: #333333; font-weight: normal;"> 5-20-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="color: #333333;">The Leader:</span><span style="color: #333333; font-weight: normal;"> </span><a href="http://starlocalmedia.com/theleader/voices/guest-column-border-adjustment-tax-will-harm-texas-consumer-economy/article_48b7ef70-3cb6-11e7-8186-73d76e8aca53.html"><span style="font-weight: normal;">Border Adjustment Tax will harm
Texas consumer economy</span></a><span style="color: #1e1e1e; font-weight: normal;"> 5-19-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">Wall Street
Journal:</span><span class="watch-title"><span style="font-weight: normal;"> </span></span><a href="http://www.wsj.com/graphics/trump-congress-reactions/"><span style="font-weight: normal;">Key Republicans Change Stance on
Trump 5-19-17</span></a><span style="font-weight: normal;">
<span style="color: #1e1e1e;"><o:p></o:p></span></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Convenience Store Decisions:<span style="font-weight: normal;"> <span style="color: #333333;"> </span></span><a href="http://www.cstoredecisions.com/2017/05/18/nrf-fights-consumption-tax-proposal/"><span style="font-weight: normal;">NRF Fights Consumption Tax Proposal</span></a><span style="font-weight: normal;"> 5-18-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Fox
Business:<span style="font-weight: normal;"> </span><a href="https://www.youtube.com/watch?v=KumqU5zG1YY&feature=youtu.be"><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">Jim Jordan on BAT: "I don't think that's what Republicans are
about"</span></a><span class="watch-title"><span style="font-weight: normal;"> 5-18-17</span></span><span style="color: #333333; font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="color: #333333;">The Ledger:</span><span style="color: #333333; font-weight: normal;"> </span><a href="http://www.theledger.com/opinion/20170518/polk-perspective-border-adjustment-tax-would-be-devastating-to-florida"><span style="font-weight: normal;">A Polk Perspective: Border Adjustment Tax would be devastating to Florida</span></a><span style="color: #232323; font-weight: normal;"> 5-18-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="color: #232323;">World
Trade Online:</span><span style="color: #232323; font-weight: normal;">
</span><a href="https://insidetrade.com/inside-us-trade/brady-touts-border-adjustable-tax-house-gop-plan-mnuchin-skeptical"><span style="font-weight: normal;">Brady touts border-adjustable tax
in House GOP plan; Mnuchin skeptical </span></a><span style="font-weight: normal;"> 5-18-17</span><span style="color: #232323; font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="color: #232323;">Politico:</span><span style="color: #232323; font-weight: normal;"> </span><a href="http://www.politico.com/story/2017/05/18/koch-brothers-trump-tax-plan-238530"><span style="font-weight: normal;">Kochs boost Trump tax plan</span></a><span style="font-weight: normal;"> 5-18-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Law360:<span style="font-weight: normal;"> </span><a href="https://www.law360.com/tax/articles/925597/gop-has-no-tax-plan-b-without-border-adjustment-rep-says"><span style="font-weight: normal;">GOP Has No Tax Plan B Without Border Adjustment, Rep. Says</span></a><span style="font-weight: normal;"> 5-18-17</span><span style="color: #333333; font-weight: normal;"><o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="color: #333333;">Bloomberg:</span><span style="color: #333333; font-weight: normal;"> </span><a href="https://www.youtube.com/watch?v=NbSrHeE32MM&feature=youtu.be"><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">Sen. Perdue on what tax reform should really focus on</span></a><span class="watch-title"><span style="font-weight: normal;">
5-17-17<o:p></o:p></span></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">CNBC:</span><span class="watch-title"><span style="font-weight: normal;"> </span></span><a href="https://www.youtube.com/watch?v=9hmJQfkRfXI&feature=youtu.be"><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">Rep. Kustoff has concerns on BAT</span></a><span class="watch-title"><span style="font-weight: normal;"> 5-17-17<o:p></o:p></span></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">Chicago
Tribune:</span><span class="watch-title"><span style="font-weight: normal;"> </span></span><a href="http://www.chicagotribune.com/news/nationworld/politics/ct-trump-republican-support-20170517-story.html"><span style="border: 1pt none windowtext; font-weight: normal; padding: 0in;">Trump support in Congress shows signs of crumbling</span></a><span class="watch-title"><span style="font-weight: normal;">
5-17-17<o:p></o:p></span></span></span></h1>
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="watch-title"><b>Politico Pro</b></span><span class="watch-title">: </span><strong><span style="font-weight: normal;">Wall
Street gives up on a 2017 tax overhaul
5-17-17</span></strong><span class="watch-title"><o:p></o:p></span></span><br />
<br />
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span class="watch-title">The Hill</span><span class="watch-title"><span style="font-weight: normal;">: </span></span><a href="http://thehill.com/policy/finance/333530-house-gop-not-sold-on-ryans-tax-reform-plan"><span style="font-weight: normal;">House GOP not
sold on Ryan’s tax reform plan </span></a><span style="font-weight: normal;"> 5-16-17</span></span><span class="watch-title"><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; font-weight: normal; mso-ascii-theme-font: minor-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></span></h1>
Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-73104806777284728202017-05-23T22:12:00.004-05:002017-05-23T22:12:55.579-05:00Can Anyone Assure Us that Currency Adjustment Will Eliminate Cost Impact on Consumers? NOPE.<br />
Congressman Jim Renacci had an interesting question today at the BAT hearing:<br />
<br />
RENACCI: “So to each witness, can any of you assure me that the currency will
adjust so that there will be no effect to the cost of our consumers? Yes or no
to each one of you.” <br /><br />CORNELL: “No, I can’t.” <br /><br />LINDSEY &
SIMON: <span style="background-color: yellow;">Silent</span>. (U.S. House Ways & Means Committee Hearing, 5/23/17)<br />
<br />
<br />
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/2XkksOsKzIs" width="560"></iframe>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-51670286213518631832017-05-23T12:58:00.003-05:002017-05-23T12:58:59.120-05:00Border Adjustment Tax Hearing by House Ways and Means Committee May 23, 2017<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/fcSH7UpSYpI" width="560"></iframe>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-6965814772863345292017-05-22T23:52:00.000-05:002017-05-22T23:52:02.621-05:00AAP Fact-checked House Ways and Means "Communication Document" for May 23rd HearingThe Americans for Affordable Products coalition did some homework to prepare the Ways and Means Committee for tomorrow's hearing. See their memo below and definitely check out the linked document:<br />
<br />
<strong>MEMO </strong><br /><br /><strong>To</strong>: House Ways and Means
Committee <br /><br /><strong>From</strong>: Americans for Affordable Products
<br /><br /><strong>Date</strong>: May 22, 2017 <br /><br /><strong>Re</strong>: Fact
Checking “Communications Document for May 23 Tax Hearing” <br />
<br />
<hr />
<br />Last week, the House Ways and Means Committee released a document to its
members providing guidance for their May 23, 2017 hearing on the Border
Adjustment Tax (BAT) called “Increasing U.S. Competitiveness and Preventing
American Jobs from Moving Overseas: Communication’s Document for May 23 Tax
Hearing.” <br /><br />Unfortunately, the Committee got it wrong by misrepresenting
the truth about the BAT and taking out context statements made by companies who
oppose it. <br /><br />A corrected version can be found here: <a href="https://keepamericaaffordable.com/getobject.aspx?file=WMR">“Increasing the Tax Burden on Working Families So Some Profitable, Multi-National Companies Operate Tax Free: Communications Document for the May 23 Tax Hearing.” </a><br /><br />Please consider using the content in this document
as you prepare for tomorrow’s hearing.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-14725464135067923642017-05-22T23:29:00.001-05:002017-05-22T23:29:20.636-05:00Hearing on How Tax Reform Will Grow Our Economy and Create Jobs (Ways and Means Committee Hearing on May 18)<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/cKf7Pme7lt8" width="560"></iframe>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-45901275719077094082017-05-22T23:26:00.002-05:002017-05-22T23:26:38.764-05:00How to Watch the Ways and Means Tax Policy Subcommittee BAT Hearing at 10 AM EST on May 23, 2017Peter Roskam's Tax Policy Subcommittee will be hosting a hearing at 10 AM EST on the subject of the Border Adjustment Tax. It is misleadingly named "<a href="https://waysandmeans.house.gov/event/hearing-increasing-u-s-competitiveness-preventing-american-jobs-moving-overseas/">Hearing on Increasing U.S Competitiveness and Preventing American Jobs from Moving Overseas</a>". What else do you expect?<br />
<br />
The witnesses include:<br />
<br />
Juan Luciano<br /> President and Chief Executive Officer, Archer Daniels Midland Company<br /> Testimony<br />
<br />
Brian Cornell<br /> Board Chairman and Chief Executive Officer, Target Corporation<br /> Testimony<br />
<br />
William Simon<br />
Former President and Chief Executive Officer, Walmart U.S.<br /> Testimony<br />
<br />
Lawrence B. Lindsey<br />
President and CEO, The Lindsey Group<br /> Testimony<br />
<br />
Kimberly Clausing<br />
Thormund A. Miller and Walter Mintz Professor of Economics, Reed College<br /> Testimony<br />
<br />
You can watch the hearing live <a href="https://waysandmeans.house.gov/live/">HERE</a>. I will post the video afterwards.<br />
<br />
It will be interesting if there is any sign of listening going on. The Americans for Affordable Products coalition will be releasing a barrage of materials throughout the day.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-56085186064728783412017-05-22T23:19:00.000-05:002017-05-22T23:19:01.649-05:00My Statement on Border Adjustment Tax for May 23rd Tax Policy Subcommittee Hearing<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;">Statement of Richard Woldenberg on
Border Adjustment Tax<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<br /></div>
<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;">Submitted to the Subcommittee on Tax
Policy <o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;">of the House Committee on Ways and
Means<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;">The United States House of
Representatives<o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<br /></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;">May 23, 2017 <o:p></o:p></span></b></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">My name is Richard Woldenberg, and I am CEO of Learning
Resources, Inc. located in Vernon Hills, Illinois. I am submitting this
testimony on behalf of our company. Our company is a family business which
develops and markets educational products and educational toys in the United
States and dozens of other countries. We
outsource the manufacturing of our products overseas, and as a result, we are a
significant importer (of our own products) into the United States. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">We have grave concerns about the Border Adjustment tax
proposal being considered by the House Ways and Means Committee as originally
described in the “<i>A Better Way</i>” plan. The proposal is rife with risk and unintended
consequences. I fear that the future of our company, and the jobs we provide,
are at stake. We are a small business
under the Federal government definition and believe that the problems we will
face under the Border Adjustment tax proposal will be experienced by thousands
of other small business importers in the United States.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-size: 12.0pt; line-height: 115%;">Our Company</span></u></b><span style="font-size: 12.0pt; line-height: 115%;">:
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Learning Resources, Inc. (LR) was founded in 1984 and is
located in Vernon Hills, Illinois and has about 150 employees in the U.S. and
U.K. The company is part of our family
business group which turned 100 years old in 2016; I am in the third generation
of my family to run this business, and we were proud to welcome the first
member of the fourth generation into our business this year. LR develops and markets proprietary educational
toys and materials in Vernon Hills but manufactures its 1400 products
overseas. Jobs at our company pay well,
turnover is low and we are an important part of our community, injecting many
millions of salary and benefit dollars into the local economy annually. In 2013 and again in 2016, LR tried and
failed to find U.S. molders interested in making our products here. In other
words, we know from recent experience that we have no realistic option to make our
products in the U.S., with or without the incentive of a reconceived Federal tax
regime. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-size: 12.0pt; line-height: 115%;">The Issues Created
by Border Adjustment Tax (BAT)</span></u></b><span style="font-size: 12.0pt; line-height: 115%;">:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">1.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><u style="text-indent: -0.25in;"><span style="font-size: 12.0pt; line-height: 115%;">We will become the involuntary subject of an historic exchange rate experiment</span></u><span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;">.
The BAT plan is unprecedented in U.S. history and its effects are unknown
and unknowable. The plan is premised on
a surging dollar that erases import costs. Betting the U.S. economy on a rising
dollar is irresponsible – we shouldn’t confuse being “bold” with being reckless. Tax policy based on presumed changes in the
value of the U.S. dollar is simply gambling.
We cannot afford tax policy based on hunches, regardless of the resumes
of those who pound the table promising dollar nirvanas.</span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-size: 12pt; line-height: 115%; text-indent: -0.25in;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Economists Auerbach and Holtz-Eakin assert
that U.S. dollar appreciation after implementation of the BAT will reduce importers’
Cost of Goods Sold (COGS) enough to pay the new Federal tax bill. This is the
basis of the contention that the plan simply “levels the playing field” without
affecting cash flows. The economists offer little more than bland assurances,
however. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">The plan’s flaws are manifest: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;">-<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 12.0pt; line-height: 115%;">Congress
can’t accurately predict the course and direction of financial markets and
hence can’t be certain of future exchange rates. What if the predictions of massive U.S.
dollar appreciation are <u>wrong</u>? What
if the changes are smaller or larger than expected, or arrive later, or fade
over time? After all, foreign exchange markets are massive, and dominated by
large pools of capital not tied to trade.
Tax policy is hardly the only factor which drives exchange rates.
Interestingly, economists have given a name to the inability to predict
exchange rates: <u>The Exchange Rate
Disconnect Puzzle</u>. See<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;">
<a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjt1LSc4YLUAhXL5YMKHZrnArkQFggtMAE&url=https%3A%2F%2Fwww.dallasfed.org%2Fassets%2Fdocuments%2Fresearch%2Feclett%2F2008%2Fel0806.pdf&usg=AFQjCNGGj0SNFH-Q5SRwd2vcQBn-SrkTEA&sig2=LiFrN9xlIWK6Mr-MqLxR6A"><span style="font-size: 12.0pt; line-height: 115%;">https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjt1LSc4YLUAhXL5YMKHZrnArkQFggtMAE&url=https%3A%2F%2Fwww.dallasfed.org%2Fassets%2Fdocuments%2Fresearch%2Feclett%2F2008%2Fel0806.pdf&usg=AFQjCNGGj0SNFH-Q5SRwd2vcQBn-SrkTEA&sig2=LiFrN9xlIWK6Mr-MqLxR6A</span></a><span style="font-size: 12.0pt; line-height: 115%;"> It is an accepted fact that movement in exchange
rates cannot be foretold.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;">-<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 12.0pt; line-height: 115%;">The
cost of imported goods will always include foreign content. For instance, foreign-made clothing often
includes U.S. cotton or U.S. thread.
Toys made in China often use imported plastics, paper or wood. Oil and gasoline are also foreign inputs. Foreign
inputs rise in cost as the dollar rises, while only local content falls in
cost. Our factories estimate 30-65% of our product cost is
foreign-sourced. This means that our
factories’ overall costs will likely RISE when the dollar rises. The economists’ assertion of cost savings is illusory.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;">-<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 12.0pt; line-height: 115%;">Dollar-denominated
costs are the norm for U.S. importers.
As the dollar rises, dollar-based costs don’t decline – they are fixed
by contract. Realizing savings will
require a line-by-line renegotiation of our entire business, essentially a
zero-sum game with our factories.
Factories may well refuse to cooperate with any effort to ratchet down
dollar-based costs. In any event, cost
reductions required to balance out the BAT will be epic and FAR beyond any cost
reduction achievement in our company history.
To fund the BAT, we will need to lower costs by as much as 19% which is
frankly absurd. This cost savings is
presumed by supporters of the BAT, but it’s entirely unrealistic.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri; mso-hansi-font-family: Calibri;">-<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-size: 12.0pt; line-height: 115%;">We
believe there are other risks to the exchange rate scheme, including resistance
by other countries (in the form of currency manipulation or interest rate
changes). There is no guarantee that the dollar will move equally in all
markets, for any number of reasons, so there is likewise no guarantee that
costs will actually decline. We also believe we will be subject to significant
changes in the terms of our bank line of credit owing to novel currency risks
imposed by the BAT. Instability in bank
financing could be devastating for many companies.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<i><span style="font-size: 12.0pt; line-height: 115%;">Unlike the 1986 Reagan tax plan, the BAT has no fallback position</span></i><span style="font-size: 12.0pt; line-height: 115%;">.
If the Reagan plan didn’t work, the Federal government had the option to
raise tax rates and no company would have been damaged. Under the BAT, corporate restructuring for
many businesses seems inevitable and significant job losses likely. If the theory behind the BAT doesn’t hold,
Congress will not be able to resurrect the companies killed by the BAT. Humpty-Dumpty can’t be put together
again. Policy makers should not take
such risks with American livelihoods.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">2.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">The BAT will likely trigger a highly-regressive inflationary firestorm</span></u><span style="font-size: 12.0pt; line-height: 115%;">.
When it becomes clear that importers will have no realistic way to
capture sufficient cost savings to pay the enormous increase in taxes caused by
the BAT, there will be no choice but to pass the costs along to consumers. And
of course, consumers always bear the cost and consequences of tax increases
like the BAT. We estimate that costs
will ultimately rise as much as 20% under the BAT.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">The mechanism for the price hike is
being demonstrated in the U.K. right now.
The collapse in the value of the British Pound from $1.50 (on the
evening of the Brexit vote) to a recent low of $1.21 mimics the inflationary
pressures likely created by BAT-induced dollar appreciation. Sharply rising
U.K. consumer prices from import cost inflation strongly suggests that consumer
inflation will naturally occur here under the BAT. Like a value-added tax, this rise in consumer
costs will be regressive in nature and strike hardest the most vulnerable in
our economy. A large population of
defenseless constituents will find their standard of living slipping into
decline post-BAT.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">For example, see these news reports
of U.K. price hikes:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"> <a href="https://www.wsj.com/articles/brexit-comes-with-price-shock-at-checkout-1489512547">https://www.wsj.com/articles/brexit-comes-with-price-shock-at-checkout-1489512547</a></span><span style="font-size: 12.0pt; line-height: 115%;"> (Brexit price shocks hits consumer
products)<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="https://www.theguardian.com/business/2016/dec/14/lego-to-raise-its-prices-in-uk-from-january-sterling"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">https://www.theguardian.com/business/2016/dec/14/lego-to-raise-its-prices-in-uk-from-january-sterling</span></a><span style="font-size: 12pt;"> (LEGO raises prices due to British Pound weakness)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://www.toynews-online.biz/news/read/lego-reportedly-raising-prices-in-the-uk-by-5/047893"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://www.toynews-online.biz/news/read/lego-reportedly-raising-prices-in-the-uk-by-5/047893</span></a><span style="font-size: 12pt;"> (LEGO letter explaining price increase)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://toyworldmag.co.uk/blog/the-end-of-days-its-the-friday-blog/"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://toyworldmag.co.uk/blog/the-end-of-days-its-the-friday-blog/</span></a><span style="font-size: 12pt;"> (Battle between retailers and suppliers over cost of the British
Pound decline)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://www.independent.co.uk/news/business/news/brexit-microsoft-prices-rise-pound-slump-value-software-impact-a7378181.html"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://www.independent.co.uk/news/business/news/brexit-microsoft-prices-rise-pound-slump-value-software-impact-a7378181.html</span></a><span style="font-size: 12pt;"> (Microsoft hikes prices 22% over British Pound decline)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://www.independent.co.uk/news/business/news/brexit-pound-value-christmas-pudding-prices-rise-a7445476.html"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://www.independent.co.uk/news/business/news/brexit-pound-value-christmas-pudding-prices-rise-a7445476.html</span></a><span style="font-size: 12pt;"> (Supply chain costs cause 21% rise in cost of Christmas pudding)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://www.cyclingweekly.co.uk/news/latest-news/brexit-will-be-the-cause-of-possible-brompton-cost-increase-in-uk-298369"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://www.cyclingweekly.co.uk/news/latest-news/brexit-will-be-the-cause-of-possible-brompton-cost-increase-in-uk-298369</span></a><span style="font-size: 12pt;"> (UK bike manufacturer may raise prices because of
currency-related supply chain cost increases)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="http://europe.autonews.com/article/20161006/ANE/161009940/ford-vauxhall-nissan-raise-uk-car-prices-after-brexit"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">http://europe.autonews.com/article/20161006/ANE/161009940/ford-vauxhall-nissan-raise-uk-car-prices-after-brexit</span></a><span style="font-size: 12pt;"> (Ford, et. al., raises car
prices because of component costs in locally-made cars).<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-align: justify;">
<a href="https://www.thesun.co.uk/news/2517213/marks-spencer-to-increase-prices-by-up-to-15-despite-making-post-brexit-promise-to-protect-shoppers-from-devaluing-pound/"><span style="font-size: 12.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">https://www.thesun.co.uk/news/2517213/marks-spencer-to-increase-prices-by-up-to-15-despite-making-post-brexit-promise-to-protect-shoppers-from-devaluing-pound/</span></a><span style="font-size: 12pt;"> (Marks & Spencer reverses course and increases prices 15%
because of the Pound).<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">3.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">The BAT will almost certainly spark trade wars</span></u><span style="font-size: 12.0pt; line-height: 115%;">.
Economists supporting the BAT confidently predict an “immediate” 25%
appreciation in the U.S. dollar after the BAT is implemented (based on a 20%
Federal tax rate for “C” Corps). Simple
math indicates that this translates into a British Pound at parity (the lowest exchange
rate <u>ever</u>), the Euro at $.80 (near its all-time low of $.70 in 1985),
and almost certainly a broken peg for the Hong Kong Dollar and other key
currencies tied to the dollar. Such sharp U.S. dollar appreciation can be
expected to devastate U.S. exports. The theory that the BAT will stimulate
export sales seems dubious in light of a skyrocketing dollar, and therefore the
value of the BAT tax holiday on export sales is of limited value. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<u><span style="font-size: 12.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12pt;">The likely financial impact of this Congress-induced
currency manipulation certainly seems calamitous. It seems delusional to
believe that other countries will simply sit idly by and let the United States
inflict this kind of harm on their economies.</span><span style="font-size: 12pt;">
</span><span style="font-size: 12pt;">Consider Canada as an example.</span><span style="font-size: 12pt;">
</span><span style="font-size: 12pt;">Canada was the third largest exporter to the U.S. in 2016, with total
exports of $278 Billion.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">The BAT on that
flow will be approximately $56 Billion, half the projected annual “take” under
the BAT.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">Some estimates indicate that
75% of Canadians live within 100 miles of the U.S. border.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">Consider the impact of that tax on the
Canadian economy and the population living near the U.S.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">Will Canada elect to just “take it”? No
chance. Add to this the fact that Canada also imported $266 Billion from the
U.S.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">The BAT will give American
exporters a significant edge in competing with Canadian suppliers by
eliminating income tax.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">Canada will get
it coming and going under the BAT.</span><span style="font-size: 12pt;"> </span><span style="font-size: 12pt;">I am
sure Canadian legislators will quickly find inspiration to give the Americans a
taste of their own medicine.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">It is implausible that these effects
will be ignored. To seriously entertain
the notion that other countries won’t find ways to retaliate is to engage in
happy talk. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">4.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">Preventing inversions but opening up other gaping tax loopholes at the
expense of our jobs and our company is unacceptable</span></u><span style="font-size: 12.0pt; line-height: 115%;">.
Eliminating the inequity of companies implementing tax gambits like
inversions would make the U.S. tax system fairer, certainly. We feel the pain
because we pay a far higher tax rate (43.6%) on our worldwide pretax income as
an Illinois-based “S” Corp. We do not shop internationally for low tax rate
jurisdictions. We believe we are typical of American small businesses. While it
may be galling that some taxpayers pay much less, <i>unjust enrichment of others does not actually make us poorer.</i> It is even MORE galling, however, to know
that we are being asked to sacrifice our businesses so large highly-profitable
mega-corporations can be excused from paying any tax under the BAT. That’s even
more unfair than the current situation and will outrage ordinary taxpayers once
they realize what has happened. We would
be much better off if Congress did nothing.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">5.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">We are a Small Business job creator but our job creation engine will be
eviscerated by the BAT</span></u><span style="font-size: 12.0pt; line-height: 115%;">. Our products were developed by Americans
in the United States, our intellectual property is owned in this country, and
we created about 150 jobs by developing a market for our educational products. We are not ashamed of our decades-long record
of helping American kids learn and American families improve their standard of
living with products that we make offshore. If we must nevertheless reorganize to fund the
BAT, however, we will be incentivized to eliminate as many high paying jobs as
possible – we will recapture 75 cents for each dollar of expense eliminated at
the new tax rate. Investments in
automation will become much more attractive – and will be immediately
deductible under “<i>A Better Way</i>” plan.
How does the BAT create enough jobs to compensate for job losses like these all over the country?<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Notably, 97% of U.S. importers are
Small Businesses, according U.S. Census data from 2014. The average import value per annum per
congressional district is about $1.5 billion from Small Business alone, meaning
that each district will pay $300 million in extra taxes under the BAT. The annual import value (2015) for the U.S.
Small Business community - $631 billion (</span><a href="https://www.census.gov/foreign-trade/Press-Release/edb/2015/exh1d.pdf"><span style="font-size: 12.0pt; line-height: 115%;">https://www.census.gov/foreign-trade/Press-Release/edb/2015/exh1d.pdf</span></a><span style="font-size: 12.0pt; line-height: 115%;">) – would fully fund the projected
$1.2 trillion ten-year revenue raised by the BAT. In other words, the BAT is a Small Business
tax. According to the U.S. Census
Bureau, there were more than 191,000 small business importers in 2015 in the
United States. That’s a lot of small
business jobs at risk under this proposal.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">6.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">Long-promised lower Federal corporate tax rates will not translate into
lower tax bills under the BAT</span></u><span style="font-size: 12.0pt; line-height: 115%;">. Despite the expected
25% rate for “S” Corps under “<i>A Better
Way</i>”, our company’s Federal tax bill is expected to increase by 4-5x. Based
on our actual 2016 results, we project paying a 165% tax bill at the 25% rate
for “S” Corps. The negative impact of BAT math intensifies as Cost of Goods
Sold (COGS) grows as a percentage of sales. In other words, the tax is
regressive in the corporate community, by pinching the lowest margin companies
most deeply. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<i><span style="font-size: 12.0pt; line-height: 115%;">Notably, importers will face giant tax bills even in years when they are
losing money. </span></i><span style="font-size: 12.0pt; line-height: 115%;">This
is simple math – importers might have no GAAP earnings but high imported COGS, and
thereby will generate a huge Federal tax bill with no money to pay it. Does the House Committee on Ways and Means want
such companies to die quickly? We believe that companies facing financial
difficulties or going through a turnaround will shed jobs in droves post-BAT
just to survive, or simply go out of business.
The BAT will lead to death by Federal taxes.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">7.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">The shift of tax base from GAAP earnings will create great risk for
companies and unpredictable tax outcomes</span></u><span style="font-size: 12.0pt; line-height: 115%;">. We finance our
business based on predicted cash flows.
Taxes under American law have always been a fraction of earnings, which facilitates
planning and certainty. As an importer under
the BAT plan, our Federal tax bill will greatly exceed our GAAP earnings, and our
ability to pay will depend on various factors largely out of our control. Planning
and certainty are no longer possible. If we fail to capture savings from dollar
appreciation for any reason (meaning that we must sharply reduce our product
costs, bring the inventory in, sell it at unprecedented profit margins and
collect the cash, all in time to fund a quadrupled tax bill) we will either
incur losses to pay taxes or have to restructure our business to survive. We don’t know what our business looks like
under these conditions.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">8.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-size: 12.0pt; line-height: 115%;">Foreign VAT systems do not put American products at a disadvantage</span></u><span style="font-size: 12.0pt; line-height: 115%;">. The BAT purportedly addresses a
longstanding disadvantage created by foreign value-add tax systems (VAT). This
is an urban myth. In fact, VAT is a tax paid by consumers in lieu of personal
income tax. The BAT is a corporate income
tax, not a personal income tax substitute. This is apples-and-oranges. VAT is
paid in full by the last buyer in the chain of commerce, the consumer. No one
pays anything in the chain other than the consumer by definition under a VAT. Foreign
corporations pay tax on their earnings just as we do in this country (corporate
income tax). U.S. tax treaties ensure
that no corporate profit dollar is taxed twice. [The fact that U.S. corporate
tax rates are the third highest in the world, behind the U.A.E. and Chad, is
probably the root cause of inversions, not the “attractiveness” of VATs.] VAT does not convey advantage to anyone.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Second, the VAT “border adjustment”
on export is simply a governmental rebate of excess tax receipts to the company
that paid the taxes. It is not a
subsidy. This is a mathematical fact, but we also know this from personal
experience. Since 1994 we have operated a company in the U.K. and export from
the European Union regularly. If VAT
border rebates were actually an export subsidy as has been alleged, we would
have been receiving this subsidy since 1994.
Although we produce audited financials for our U.K. business, there is
no line in those financials for VAT revenues or VAT profits. There is no such thing. Large multinational
corporations have been chirping about the “unfairness” of VAT border
adjustments in support of the BAT, but notably they are also significant
exporters from VAT jurisdictions. If it
is possible to profit from VAT, as they assert, they themselves must be
receiving this subsidy. The Committee should
request information on the benefits large multinationals have received over the
last 20 years under VAT tax regimes.
Such requests will be greeted with silence.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">Finally, the assertion that VAT
border adjustment is unfair to Americans is implausible given the careful
scrutiny given to trade disputes under GATT. Since 1947, the U.S. has been
involved in 379 cases at the WTO either as a plaintiff, defendant or other
participant. That’s a major WTO lawsuit involving
the U.S. approximately every two months for 70 years. If VAT “border
adjustments” have been so prejudicial to American exporters since 1947, why
hasn’t it been litigated by the United States?
Such a serious charge deserves much greater scrutiny.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-size: 12.0pt; line-height: 115%;">Financial Models</span></u></b><span style="font-size: 12.0pt; line-height: 115%;">:
I have <a href="https://drive.google.com/file/d/0B5KeSjaIXSmHWTZEcDdrZVd0VG8/view?usp=sharing">attached model financials for two hypothetical toycompanies</a>, one with gross margins of 38% (yellow highlights) and one with gross
margins of 25% (orange highlights). The
25% gross margin company operates on lower expenses to make similar money (for
instance, they might be a “make-to-order” company without a warehouse). Both companies are modeled with simplifying
assumptions under the BAT, focusing on the impact of the loss of the COGS
deduction. Both companies are modeled as an Illinois-based “S” Corp with steady
State taxes. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">There are four scenarios presented for each company: (A) current tax law, (B) “<i>A Better Way</i>” Blueprint, (C) Post-ABW
(details below), and (D) Economists Optimistic Scenario (details below). Scenarios C and D are essentially opposite
scenarios. Scenario D illustrates what economists
predict, namely that companies will capture COGS savings from U.S. dollar
appreciation to fully pay their new BAT tax bills. Scenario C models what
happens when companies capture none of the predicted currency benefits, leaving
the model companies no choice but to raise prices (up 34%) and reduce expenses
(down 20%) to preserve their financial results. This response will also trigger
an immediate sharp decline in sales (down 40% in units). These two scenarios produce the same cash flow
as the current law scenario (A) but only with major operational changes. None
of scenarios B, C or D are better than the status quo for the model companies,
or our company, or the thousands of similarly-situated companies all over the
United States. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">I would like to draw your attention to the relationship of
Payroll expense to net taxable income in the models. Payroll expense (jobs) is much greater than
pre-tax profit in most companies. The true
social impact of independent businesses stems from their payroll expenses (in
other words, jobs, jobs, jobs). This is certainly the case for multi-generational
family businesses like ours which are the bedrock of communities through good
times and bad. But the BAT threatens
payrolls at small business importers. Consider how much Federal taxes increase
in the new plan (B v. A) despite the reduction in rate from 39.6% to 25%. The Federal
tax bill skyrockets. In the examples
here, <u>the Federal tax bill goes up between 8.1x and 11.4x</u>. [A more thorough
modeling against our actual financials shows taxes rising between 4-5x over
today’s 39.6% Federal tax bill.] Clearly new Federal taxes will endanger
payroll expenses (jobs). Is this what taxpayers want? <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">It is important to note that in the examples here, the model
companies must recover 24% of COGS, presumably through resetting dollar
contracts after the dollar appreciates by the promised 25%. That’s a fantasy of
massive and unachievable savings. We are ecstatic if we can shave 1% off our
COGS in any given year. Suspending disbelief, please consider what this asserted
exchange rate value transfer means to the guy on the other side of the trade (our
vendors). The BAT proposal will suck wealth
from every country in the world over to the U.S. By manipulation of the Federal income tax
code, Congress will thus force us to become the agent which lands this big
wealth transfer . . . all so we can hand it over to Uncle Sam. Not a very
appealing prospect, especially because it must be played out against our
long-time, trusted vendor partners. This
will devastate critical business relationships. Shaking down our supply chain
to pay a huge increase in Federal taxes means we become the government’s shills. This is obviously bad tax policy.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">No matter how the BAT is spun by the talking heads, no one is
going to miss the point that importer tax bills are going to multiply under the
BAT. As more business owners and their
accountants do the math, and realize that they face unimaginable tax burdens
never seen since the institution of the Federal Income Tax system in 1913, they
will rise up against the politicians who devised the plan. The voters’ anger will only mount as job
losses pile up and prices rise. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: 12.0pt; line-height: 115%;">There must be another, better way to fix the tax system in
this country, and it is Congress’ responsibility to find it. Thank you for
considering my views. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<span style="font-family: "Calibri","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><!--[if gte vml 1]><v:shape id="_x0000_i1026"
type="#_x0000_t75" style='width:530.25pt;height:488.25pt' o:ole="">
<v:imagedata src="file:///C:\Users\Home\AppData\Local\Temp\msohtmlclip1\01\clip_image003.emz"
o:title=""/>
</v:shape><![endif]--><!--[if !vml]--><!--[endif]--><!--[if gte mso 9]><xml>
<o:OLEObject Type="Embed" ProgID="Excel.Sheet.12" ShapeID="_x0000_i1026"
DrawAspect="Content" ObjectID="_1556999217">
</o:OLEObject>
</xml><![endif]--></span>Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-38724291047656506102017-05-22T22:58:00.003-05:002017-05-22T22:58:30.545-05:00Border Adjustment Clips May 22, 2017<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bna.com/koch-study-takes-n73014451093/">Koch Study Takes Aim at Full Expensing in
House GOP Tax Plan</a> 5-17-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bloomberg.com/news/articles/2017-05-17/brady-sets-border-tax-hearing-as-mcconnell-predicts-failure"><span style="background: white; mso-bidi-font-family: Arial;">Brady Sets Border-Tax
Hearing Even as McConnell Predicts Failure</span></a><span class="lede-text-onlyhighlight1"> 5-17-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="lede-text-onlyhighlight1"><b><br /></b></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="lede-text-onlyhighlight1"><b>Washington Examiner: </b></span><a href="http://www.washingtonexaminer.com/gops-controversial-import-tax-plan-gets-a-hearing/article/2623270">GOP's controversial import tax plan gets a
hearing</a><span style="color: #292b2c; mso-bidi-font-family: Arial;"> 5-16-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Retail Dive:</b> <a href="http://www.retaildive.com/news/retail-execs-to-meet-with-treasury-chief-on-border-adjustment-tax/442806/"><span style="letter-spacing: .2pt; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: bold; mso-font-kerning: 18.0pt;">Retail execs to meet with Treasury chief on
border adjustment tax</span></a><span style="letter-spacing: .2pt; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: bold; mso-font-kerning: 18.0pt;"> 5-16-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<b style="font-family: Arial, Helvetica, sans-serif;">The Hill: </b><a href="http://thehill.com/policy/finance/333530-house-gop-not-sold-on-ryans-tax-reform-plan" style="font-family: Arial, Helvetica, sans-serif;">House GOP not sold on
Ryan’s tax reform plan</a><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;">5-16-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Tampa Bay Times: </b><a href="http://www.tampabay.com/opinion/letters/wednesdays-letters-border-tax-would-hit-consumers-hard/2324086">Border
tax would hit consumers hard</a><span class="entry-title"><span style="color: #181818;"> 5-16-17<o:p></o:p></span></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="entry-title"><b><br /></b></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="entry-title"><b>Market
Watch: </b></span><a href="http://www.marketwatch.com/story/us-oil-would-surge-if-border-adjusted-tax-enacted-says-goldmans-currie-2017-05-10"><span style="letter-spacing: -.35pt;">U.S. oil prices will skyrocket if border tax
comes in, says Goldman’s Currie</span></a><span style="letter-spacing: -.35pt;"> 5-12-17</span><span class="entry-title"><o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="entry-title"><b><span style="color: #181818;"><br /></span></b></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="entry-title"><b><span style="color: #181818;">Detroit News:</span></b><span style="color: #181818;"> </span></span><a href="http://www.detroitnews.com/story/opinion/2017/05/11/border-tax/101536840/">Border adjustment tax
carries unintended consequences</a> 5-11-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill:</b> <a href="http://thehill.com/policy/finance/332977-lighthizer-confirmed-as-chief-trade-negotiator">Senate confirms
Trump's chief trade negotiator</a> 5-11-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Columbus Dispath:</b> <a href="http://www.dispatch.com/opinion/20170510/letter-speaker-ryan-drop-border-adjustment-tax">Speaker
Ryan, Drop the Border Adjustment Tax</a>
5-10-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Fox Business:</b> <a href="https://www.youtube.com/watch?v=LuTkDQ0IElw&feature=youtu.be"><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; mso-font-kerning: 18.0pt; padding: 0in;">Rep. McCarthy on BAT: "Very difficult
to get through"</span></a><span class="watch-title"><span style="line-height: 115%;"> 5-10-17<o:p></o:p></span></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="watch-title"><b><span style="line-height: 115%;"><br /></span></b></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="watch-title"><b><span style="line-height: 115%;">Roll Call:</span></b></span><span class="watch-title"><span style="line-height: 115%;"> </span></span><a href="http://www.rollcall.com/news/policy/ryan-sell-tax-overhaul-benefits-ohio">Ryan to Sell Tax Overhaul Benefits in Ohio</a>
5-10-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Columbus Dispatch:</b> <a href="http://www.dispatch.com/news/20170510/on-eve-of-ryan-visit-ohio-business-group-speaks-out-against-proposed-tax-on-imports">On
eve of Ryan visit, Ohio business group speaks out against proposed tax on
imports</a><span style="color: #232323;">
5-10-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bna.com/cohn-mnuchin-oppose-n73014450723/">Cohn, Mnuchin Oppose Border Tax, Hatch Says</a>
5-10-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Reuters:
</b><a href="http://www.reuters.com/article/us-usa-congress-tax-idUSKBN1852OL">U.S.
Senate finance panel unlikely to support import tax: chairman</a> 5-9-17</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Times: </b><a href="http://www.washingtontimes.com/news/2017/may/9/corporate-tax-rates-disadvantage-us-companies/">The ‘Made in America’ tax myth</a>
5-9-17<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>MLive:</b> <a href="http://www.mlive.com/business/ann-arbor/index.ssf/2017/05/totoya_officials_react_to_trum.html">Top Toyota officials talk fuel standards, border tax in Ann Arbor visit</a><span style="color: #222222; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-font-kerning: 18.0pt;"> 5-9-17<o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Daily Herald:</b> <a href="http://www.dailyherald.com/discuss/20170508/border-adjustment-tax-could-devastate-illinois-importers-and-jobs">Border adjustment tax could devastate
Illinois importers and jobs</a> 5-8-12<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill:</b> <a href="http://thehill.com/policy/finance/332248-gop-senator-border-adjustment-tax-would-be-dead-on-arrival-in-senate">GOP senator: Border
adjustment tax would be 'dead on arrival' in Senate</a> 5-7-17<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>CNBC:</b> <a href="http://www.cnbc.com/2017/05/05/border-adjustment-tax-is-not-productive-varsity-brands-ceo-says.html">A
border adjustment tax is not productive, former Varsity Brands CEO says</a> 5-7-17</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington
Times:</b> <a href="http://www.washingtontimes.com/news/2017/may/7/letter-to-the-editor-trump-must-battle-bat/">Trump must battle BAT</a>
5-7-17<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Greenville
Online:</b> <a href="http://www.greenvilleonline.com/story/opinion/contributors/2017/05/05/commentary-why-import-tax-would-hurt-consumers/101294400/">Commentary: Why
import tax would hurt consumers</a> 5-5-17<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>CNBC:</b> <a href="https://www.youtube.com/watch?v=7_TTel33f04&feature=youtu.be"><span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; mso-font-kerning: 18.0pt; padding: 0in;">Trade Advisor, Matthew Rubel on BAT:
"Lead[s] to more unemployment"</span></a><span class="watch-title"> 5-8-17</span><o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg: </b><a href="https://about.bgov.com/blog/impact-changes-border-tax-policies/">The impact of changes to border tax policies</a>
5-4-17<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Aftermarket News:</b> <a href="http://www.aftermarketnews.com/border-adjustment-tax-cost-car-owners-160-per-year-auto-repairs-maintenance-association-says/">Border
Adjustment Tax To Cost Car Owners $160 More Per Year For Auto Repairs And
Maintenance, Association Says</a> 5-4-17</span><o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com1tag:blogger.com,1999:blog-1026439372356203883.post-17413678393092823372017-05-14T22:23:00.000-05:002017-05-14T22:23:08.355-05:00Latest News on the BATAs one crazy week winds down, and another presumably ramps up (Merrick Garland for FBI Director, says Mitch McConnell!), there have been a couple more Border Adjustment Tax tidbits worth pondering:<br />
<br />
a. <u style="font-weight: bold;">Mnuchin tells G-7 that Border Tax isn't part of his plan</u>. On Saturday, Treasury Secretary Steven <a href="https://www.wsj.com/article_email/g-7-finance-chiefs-reassured-on-u-s-tax-plans-1494683384-lMyQjAxMTI3NTEzMzgxNjMwWj/">Mnuchin reassured G-7 nations</a> that he won't be including the BAT in his tax plan. <br />
<br />
“'<i>The emphasis was initially on a border tax, which is taxation, but also trade policy,' said Italian Finance Minister Pier Carlo Padoan in an interview. 'Now, the emphasis—and Secretary Mnuchin was very clear about this—is about tax reform.'</i>”<br />
<br />
So Mnuchin says NO on BAT in public to allies. Good sign.<br />
<br />
b. <u style="font-weight: bold;">President Trump Explains the role of the BAT in his tax plans</u>. Mr Trump's words can't be summarized, you must read them yourself. This is from <a href="http://www.economist.com/trumptranscript">the transcript of his interview by The Economist</a>, a fascinating document, worth a scan (believe me):<br />
<br />
"<em><strong>But as you said Mr President, a border-adjustment tax has some similarities to that. Are you still considering a border-adjustment tax?</strong></em><br />
<em><strong><br /></strong></em>
<i>We are dealing with Congress…because it’s not really what I’m considering. I mean look, on health care, I think we have a great bill and there’s still a little bit further to go because we’re also dealing with the Senate, but the Senate I believe really wants to get something done because Obamacare is dead, just so we understand. Obamacare is absolutely dead. The insurance companies are leaving. Yesterday Aetna just announced they’re pulling out. You have states that aren’t going to have any insurance companies. You know when people say, “Oh, Obamacare is so wonderful,” there is no Obamacare, it’s dead. Plus we’re subsidising it and we don’t have to subsidise it. You know if I ever stop wanting to pay the subsidies, which I will.</i><br />
<i><br /></i>
<em><strong>You’d pull the plug on that? If this bill doesn’t go through you’d stop those subsidies?</strong></em><br />
<i><b><br /></b>No, this bill only gives them one month. They don’t realize that, that’s another thing. Good point. This bill gives them one month, it gave, you know the subsidy…</i><br />
<em><strong><br /></strong></em>
<i><strong>The continuation of the subsidy?</strong><br /></i><br />
<i>The subsidy to the insurance companies, yes. Anytime I want because actually.</i>"<br />
<br />
Uh-huh, I get it now . . . . Btw, this is real, check the link. And if that's not convincing, please note <a href="https://www.nytimes.com/2017/05/12/us/politics/trump-sean-spicer-sarah-huckabee-sanders.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0">the New York Times' description of what it's like to speak for Mr. Trump</a>.<br />
<br />
c. <u style="font-weight: bold;">South Carolina Republican Party Adopts Resolution Against BAT</u>. A big slap in the face for Mr. Ryan and Mr. Brady from a core Republican State. <a href="https://www.sc.gop/wp-content/uploads/2017/05/SCGOP-2017-Resolutions.pdf">See the resolution here</a>.<br />
<br />
A busy weekend of news, and next up are the hearings on Thursday.<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-69755914399597665612017-05-12T22:31:00.000-05:002017-05-12T22:31:52.950-05:00Chaos in Washington . . . but a Few Thoughts on the BAT AnywayThe repulsive degradation of national leadership in the last few days certainly sapped my energy. Nevertheless, despite the downward spiral of the Trump Presidency and its implications for the prospects of the BAT, we are not out of the woods, and must keep the pressure up.<br />
<br />
A few tidbits of news for you:<br />
<br />
<u style="font-weight: bold;">Ways and Means Hearing Set for Thursday</u>: Kevin Brady and Peter Roskam <a href="http://thehill.com/policy/finance/332950-house-panel-to-hold-tax-reform-hearing-next-week">called hearings for May 18th</a> on tax reform. Let's not do cartwheels yet. This is something like a Soviet show trial. The outcome of the "hearing" is known in advance. Please don't mistake the hearing for an actual interest in dialogue or fact finding. This is about creating a record to justify what they always wanted to do. In any event, <a href="https://twitter.com/stevenmnuchin1/status/862724011763093505">Steven Mnuchin tweeted his approval</a>, noting the need to "emphasize economic growth". As previously noted here, the anti-growth aspect of the BAT kills it for the estimable Trump Administration.<br />
<br />
<u style="font-weight: bold;">House Majority Leader Kevin McCarthy Admits the BAT is not going well</u>. McCarthy actually said it will be "very difficult" to get through. See the video:<br />
<br />
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/LuTkDQ0IElw" width="560"></iframe>
<br />
<br />
Frankly, tax reform seems remote given the controversy paralyzing Washington right now. Let's not forget that health care must come first, then a budget, then tax reform. And the Trump plan imposes ridiculous financial stress on the American economy with skyrocketing fiscal deficits, something this Congress is highly unlikely to approve. Then what? Who knows.<br />
<br />
An interesting next shoe to fall is when Congressional Republicans start to turn on Mr. Trump. He may have started this process with the Comey firing. In my book, that all but ends tax reform and with it goes the BAT.<br />
<br />
<u style="font-weight: bold;">Follow up on Canada</u>: In my last post, I noted that the imposition of the BAT on Canadian imports into the U.S. will generate about half of the expected value of the BAT. Whoa. Please note, however, that the BAT proposal also eliminates tax on all U.S. exports to Canada. <a href="https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_United_States">With $266 BB in 2016 exports to Canada</a>, the elimination of income tax on those sales will be quite a shot in the arm for U.S. exporters' competitiveness in Canadian markets. Think they'll notice?<br />
<br />
To put this in perspective, please remember <a href="https://www.wsj.com/articles/trump-administration-plans-to-impose-20-tariff-on-canadian-soft-lumber-imports-1493075372">the hullabaloo over the 20% tariff recently imposed on Canadian softwood-lumber exports to the U.S</a>. That sudden move spurred an immediate series of interactions between the U.S. and Canada, including calls between Justin Trudeau and Trump. And how much was at stake? $1 BB in tariffs on $5 BB in U.S. imports. This absolutely pales in comparison to the shocks that the BAT would impart on both Canadian imports here and U.S. exports into Canada. One billion dollars is just chump change by comparison. Yet the BAT continues to enjoy the support of House Republican leadership. Does not compute. Does not compute at all.<br />
<br />
More to follow, no doubt.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-89590779000820240132017-05-09T22:29:00.003-05:002017-05-09T22:29:43.957-05:00Peter Navarro's Star Fades but that Doesn't Mean the BAT is DeadThe WSJ notes that <a href="https://www.wsj.com/articles/despite-setbacks-trumps-trade-warrior-peter-navarro-is-fighting-on-1494275645">Peter Navarro</a>, Trump's far out adviser on trade, has been marginalized in the White House after a power struggle with less heart-of-darkness Administration officials like Gary Cohn. According to the WSJ article, Navarro is now in charge of a staff of two, including himself, and has a 15 minute weekly window to meet with President Trump. Many of his wackiest (read, most dangerous) ideas have been tabled, discredited, abandoned (you get it). <br />
<br />
All of this is good because it reduces the likelihood that the White House will somehow turn around and favor the BAT. Navarro was the most vocal of White House officials behind the BAT, and with his star fading away, it seems unlikely that the collection of actual business people in the White House will take the risk of supporting the dangerous and ill-conceived Border Adjustment Tax.<br />
<br />
Then again, they do want our money. So it's not over yet.<br />
<br />
An interesting way to understand, yet again, how dangerous and unpredictable the BAT would be is to consider the integration of our economy with Canada. That issue gets most of its air play in discussions of NAFTA. However, the indiscriminate BAT does not care about NAFTA. Everything from Canada would be taxed under the BAT. <a href="https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_United_States">Canada is the U.S.'s number two trading partner</a>, to the tune of $544 BB per year (2016). This is just shy of China, if that gives you a sense of how gigantic the trade flows are. Canada is the third largest exporter to the U.S. ($278 BB) behind China and Mexico. The 20% bill under the BAT for importing from Canada will be a cool $55 BB per year, about half of the net raise expected under the BAT. Think about how well that will fly in the Great North,<br />
<br />
Another aspect of this is to consider the on-the-ground impact of this law on Canadians. It may surprise you to learn that <a href="http://travel.nationalgeographic.com/travel/countries/canada-facts/">75% of Canadians are estimated to live within 100 miles</a> of the U.S. border. Other estimates suggest as many 90% live by the border. The folks that live near the U.S. are very often involved in business activities with the U.S. Goods (and components) go back and forth across the border, as do services, and many businesses are active on both sides of the border. The scale of this activity is mind-boggling. With so many folks living right up against the border, it can be anticipated that a BAT in the U.S. could devastate the Canadian economy. Much more than a "shock".<br />
<br />
If this is true, how could it be in our interest to "restructure" our "broken tax system" to expose the world's leading economy to this risk? We are also the strongest economy. Yes, it's crazy and yes, it's unimaginably irresponsible. The response of economists, where they reassert the theoretical underpinnings of the BAT proposal, is completely unresponsive to this known risk. Theory aside, how do we make such a proposal workable, under any circumstances, when so many people will be instantly whacked? This has dramatic foreign relations implications, and unknown economic and legal consequences. The likelihood of serious and immediate (or preemptive) retaliation also seems very, very high.<br />
<br />
I think I read that in "Duh" Magazine.<br />
<br />
You can add to that the ripple effects on the U.S. economy from the BAT's impact on Mexico. Trade deficit hawk and notorious paranoid Peter Navarro might assert that it is in our best interest to issue these shock waves. Hence the good news that he is working out of a White House closet these days. Let's hope he stays there.<br />
<br />
Frankly, this is a sad, sick joke. The politicians should hang their heads in shame for even proposing it. It's malpractice. But then again, they're politicians. What do you expect???Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-25592160649742029982017-05-07T22:28:00.004-05:002017-05-07T22:28:56.585-05:00Border Adjustment Clips May 7, 2017<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>National Review:</b> <a href="http://www.nationalreview.com/corner/447350/border-adjustment-tax-republican-efforts">Why the Effort to Push theBorder-Adjustment Tax Further?</a>
5-4-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Politico:</b> <a href="http://www.politico.com/story/2017/05/04/freedom-caucus-tax-reform-plan-238003">Freedom Caucus crafting tax reform plan</a> 5-4-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington
Post:</b>
<a href="https://www.washingtonpost.com/opinions/if-retail-politics-doesnt-kill-this-1-trillion-tax-the-supreme-court-should/2017/05/03/4a623b42-2f77-11e7-9dec-764dc781686f_story.html?utm_term=.8bd8eda0bc07">If
retail politics doesn’t kill this $1 trillion tax, the Supreme Court should</a> 5-3-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Quartz:</b> <a href="https://qz.com/973738/apples-amazing-cash-pile-shows-the-flaw-in-donald-trumps-corporate-tax-cuts/">Apple’s
amazing cash pile shows the flaw in Donald Trump’s corporate tax cuts </a><span style="color: #4c4c4c;"> 5-3-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Myrtle Beach Online:</b> <a href="http://www.myrtlebeachonline.com/opinion/op-ed/article148247574.html">Proposed ‘import tax’ would hurt South
Carolina</a> 5-3-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Michigan Radio:</b> <a href="http://michiganradio.org/post/those-auto-manufacturing-jobs-are-not-coming-back">Those auto manufacturing jobs are not coming
back</a> 5-2-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bna.com/ways-means-seeking-n57982087411/">Ways and Means Still Seeking ‘One Voice’ on
a Tax Package</a> 5-2-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>American Action
Forum:</b> <a href="https://www.americanactionforum.org/daily-dish/bernanke-border-adjustment/">Bernanke and Border Adjustment</a>
5-2-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington
Examiner: </b><a href="http://www.washingtonexaminer.com/arthur-laffer-trumps-tax-plan-should-follow-the-reagan-model/article/2621763">Arthur Laffer: Trump's tax plan should
follow the Reagan model</a><span style="color: #292b2c; mso-bidi-font-family: Arial;"> 5-1-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><span style="color: #292b2c; mso-bidi-font-family: Arial;"><br /></span></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><span style="color: #292b2c; mso-bidi-font-family: Arial;">Washington Examiner:</span></b><span style="color: #292b2c; mso-bidi-font-family: Arial;"> </span><a href="http://www.washingtonexaminer.com/ryan-linked-outside-group-begins-spending-on-tax-reform-ads/article/2621759">Ryan-linked outside group begins spending on
tax reform ads</a><span style="color: #292b2c; mso-bidi-font-family: Arial;"> 5-1-17</span><b><o:p></o:p></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Naples Daily News:</b> <a href="http://www.naplesnews.com/story/opinion/contributors/2017/04/30/commentary-border-adjustment-tax-could-harm-florida/100952384/">Commentary:
Border adjustment tax could harm Florida</a> 4-30-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bloomberg.com/politics/articles/2017-04-30/house-tax-panel-chairman-still-committed-to-border-adjusted-plan"><span style="background: white; mso-bidi-font-family: Arial;">House Tax-Panel Chairman
Still Committed to Border-Adjusted Plan</span></a><span class="lede-text-onlyhighlight1"> 4-30-17<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="lede-text-onlyhighlight1"><b><br /></b></span></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="lede-text-onlyhighlight1"><b>Fox News:</b></span><span class="lede-text-onlyhighlight1"> </span><a href="http://www.foxnews.com/opinion/2017/04/29/give-trump-130-days-presidents-tax-plan-is-his-biggest-test-and-biggest-opportunity.html">Give
Trump 130 days: President's tax plan is his biggest test (and biggest
opportunity)</a> 4-29-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Barron’s:</b> <a href="http://www.barrons.com/articles/the-trump-tax-plan-the-good-bad-and-dumb-1493438617">The Trump Tax Plan: The Good, Bad, and Dumb</a><span style="color: #333333; mso-bidi-font-family: Arial;"> 4-29-17</span><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Forbes:</b> <a href="https://www.forbes.com/sites/gregpetro/2017/04/28/bat-2-0-dont-take-your-eye-off-the-bat/#6603b57745be">Why
the Border Adjustment Tax Is Likely To Sneak Back Into Trump’s Plan</a> 4-28-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Post:</b> <a href="https://www.washingtonpost.com/news/powerpost/wp/2017/04/28/house-gop-working-with-white-house-on-tax-plan-for-now/?utm_term=.c10caf2bdb87">House GOP working with White House on tax
plan — for now</a> 4-28-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Global Trade:</b> <a href="http://www.globaltrademag.com/in-the-news/trump-tax-plan-no-border-adjustment">Trump
Tax Plan: No Border Adjustment</a>
4-28-17</span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bna.com/border-tax-foes-n57982087307/">Border Tax Foes Keep Up Pressure Pointing to
Impact on States</a> 4-28-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>ExecutiveBiz:</b> <a href="https://blog.executivebiz.com/2017/04/boeing-backs-tax-reform-border-adjustment-tax/">Boeing CEO Dennis Muilenburg Backs Tax
Reform, ‘Border Adjustment’ Tax</a> 4-28-17<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Monitor:</b> <a href="http://www.themonitor.com/news/business/article_94708850-2bbd-11e7-b323-3be06bbc0f32.html">NAFTA likely to live on, but border tax
likely dead</a><span style="color: #333333; mso-bidi-font-family: Arial;"> 4-27-17</span><o:p></o:p></span></div>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Wichita Eagle:<span style="font-weight: normal;"> </span><a href="http://www.kansas.com/news/politics-government/article146972014.html"><span style="font-weight: normal;">White House unveils tax plan
that’s broad on goals, short on specifics</span></a><span style="font-weight: normal;">
4-26-17<o:p></o:p></span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Washington Times:<span style="font-weight: normal;"> </span><span style="font-weight: normal;"><a href="http://www.washingtontimes.com/news/2017/apr/26/steven-mnuchin-border-adjustment-tax-doesnt-work-i/">Mnuchin pledges ‘biggest tax cut
and largest tax reform’ in U.S. history</a> 4-26-17</span></span></h1>
<h1>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;">Vegas Voice<span style="font-weight: normal;">: </span><a href="http://www.thevegasvoice.net/latest-edition.html" style="font-weight: normal;">BAT Tax Would Punish
Seniors</a><span style="font-weight: normal;"> (pg 28) 5-2017</span></span></h1>
<div class="MsoNormal">
<b style="font-family: Arial, Helvetica, sans-serif;">Texas Policy:</b><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><a href="https://www.texaspolicy.com/library/doclib/CEF-R-Street-Border-adjustment-Tax-Paper.pdf" style="font-family: Arial, Helvetica, sans-serif;">IMPACT OF A
BORDER-ADJUSTMENT TAX ON THE TEXAS INSURANCE MARKET</a><span class="A0" style="font-family: Arial, Helvetica, sans-serif;"> 5-2017</span></div>
Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com1tag:blogger.com,1999:blog-1026439372356203883.post-58064693530270006422017-05-03T23:22:00.003-05:002017-05-03T23:22:57.644-05:00Opposition to BAT Still Strong. Anti-growth Argument Gaining Traction.It is hard to know how to interpret current affairs in Washington. Trump has so scrambled the usual indicators that almost nothing follows logically. Today, we are told that there will be a vote on health care legislation tomorrow. After Rep. Fred Upton came out against the latest version of Obamacare repeal, he suddenly reversed course after he submitted an amendment protecting some folks with pre-existing conditions. Upton's change of heart seems to have tipped the balance, if you believe what you read in the papers.<br />
<br />
The vote on Obamacare repeal is both a test of House Republicans being able to get anything done . . . at all, and a vote of questionable significance. One reason it has been hard to corral 216 votes is that House Republicans worry that if the law does not survive in its present form after being rewritten by the Senate, the vote will be a death warrant, particularly for moderates. Voting to disenfranchise 24 million people from health insurance right before a midterm election has to give most Congressmen pause. And if said bill won't become law later, it is nothing more than a "sense of the House" bill, good for election fodder but not much more. Republicans fear creating the conditions for either strong Republican opposition in the primaries, or strong Democratic opposition in the general election, or both.<br />
<br />
What a plan.<br />
<br />
And after healthcare passes out of the House, they will turn to a full year budget and then taxes.<br />
<br />
And the Trump plan, however it gets changed, will need some funding sources. I think it is political suicide, not to mention economic suicide, to even think about huge deficits right now. I like candy as much as the next guy but this makes no sense. Soooo, if they need money to make tax reform "work", the BAT remains an attractive option, particularly if you don't care what happens next.<br />
<br />
[<b><u>Side note</u></b>: When is a tax cut not a tax cut? When it is revenue-neutral. Don't be fooled by tax reallocation being marketed as a tax "cut". If the revenue is neutral, that means every dollar of tax "reduction" is matched by a like tax increase. Hence, revenue-neutral. This hardly makes sense, and perhaps will explain why so many people are screaming about the BAT (it's the Republicans' tax increase part). The folks who see their tax bills melting away are very eager for the plan, damn the consequences, and the rest of us (including consumers) are screaming bloody murder.]<br />
<br />
Putting aside the Senate as firebreak, the BAT has another fatal flaw. It is not part of the Trump plan because the White House (rightly) fears it is a growth suppressant. The premise behind the Trump plan is that we have no fix for our economic problems unless we have sustained higher rates of growth. The BAT was bounced on the rationale that price hikes and economic dislocation will dampen the hoped-for 3%+ growth. The anti-growth aspect of the BAT is a fatal flaw in the economic reasoning of Mr. Trump, and will therefore be rejected.<br />
<br />
Who knows whether this will make it more or less difficult to gather votes. Washington is such an odd place today. One would think this idea, particularly if it gets some air time, will weigh on the conscience of Congressmen making decisions on whether or not to support a future tax reform plan. Nevertheless, it is in the background on this debate, and increasingly important in understanding which way the wind is blowing.<br />
<br />
And if the growth argument doesn't prevail, Ted Olsen argues <a href="https://www.washingtonpost.com/opinions/if-retail-politics-doesnt-kill-this-1-trillion-tax-the-supreme-court-should/2017/05/03/4a623b42-2f77-11e7-9dec-764dc781686f_story.html?utm_term=.3a0944550390">in today's Washington Post</a> that there are serious Constitutional issues with the BAT. Darn!<br />
<br />
Stay tuned. I know it's like a slow motion train wreck, but none of us can afford to turn away yet. Ryan and Brady have to concede first, something that seems to be far away.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-70421433642135864282017-05-01T17:36:00.000-05:002017-05-01T17:36:54.835-05:00Border Adjustment Clips of May 1, 2017<span style="font-family: Arial, Helvetica, sans-serif;"><br /><b>PRWeb</b>: <a href="http://www.prweb.com/releases/2017/04/prweb14267545.htm">Border-Adjusted Tax Not the Answer to Tax Reform, According to New NCPA Report</a> 4-28-17 <br /><br /><b>CNBC</b>: <a href="http://www.cnbc.com/2017/04/27/house-is-on-80-common-ground-with-white-house-on-taxes-rep-brady-says.html">House is on '80% common ground' with Trump on taxes, Ways and Means chair Brady says</a> 4-27-17 <br /><br /><b>The Hill</b>: <a href="http://thehill.com/blogs/floor-action/senate/330971-top-senate-goper-border-tax-probably-dead">Senate's No. 2 Republican: Border tax 'probably dead'</a> 4-27-17 <br /><br /><b>KTAR.com</b>: <a href="https://ktar.com/story/1547517/arizona-congressman-happy-see-border-tax-left-trumps-tax-plan/">Arizona congressman happy to see border tax left out of Trump’s tax plan</a> 4-27-17 <br /><br /><b>CNBC</b>: <a href="https://www.youtube.com/watch?v=wsTeY8pHcLk&feature=youtu.be">Senator Perdue will not sign off on any form of BAT</a> 4-27-17 <br /><b><br />Real Clear Policy</b>: <a href="http://www.realclearpolicy.com/articles/2017/04/26/dont_let_multinational_corporations_derail_tax_reform_110228.html">Don't Let Multinational Corporations Derail Tax Reform</a> 4-26-17 <br /><b><br />Vox</b>: <a href="http://www.vox.com/policy-and-politics/2017/4/26/15434326/trump-border-adjustment-tax">It turns out Trump is open to a border adjustment tax after all</a> 4-26-17 <br /><br /><b>Washington Examiner</b>: <a href="http://www.washingtonexaminer.com/import-tax-is-off-trumps-agenda-but-its-not-completely-dead/article/2621396">Import tax is off Trump's agenda, but it's not completely dead</a> 4-26-17 <br /><br /><b>Bloomberg</b>: <a href="https://www.youtube.com/watch?v=goDp8-x0bYk">Rep. Williams: BAT "it's a nonstarter with me"</a> 4-26-17 <br /><b><br />S&P Global Platts</b>: <a href="http://www.platts.com/latest-news/oil/washington/white-house-proposes-tax-reform-without-border-21564004">White House proposes tax reform without border adjustment</a> 4-26-17 <br /><br /><b>Alternet</b>: <a href="http://www.alternet.org/its-official-koch-brothers-have-killed-trumps-job-plan">It's Official: How the Koch Brothers Killed Trump’s Job Plan</a> 4-26-17 <br /><br /><b>NY Times</b>: <a href="https://www.nytimes.com/2017/04/25/us/politics/orrin-hatch-trump-tax-cuts-deficit-economy.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0">Trump Is Said to Abandon Contentious Border Tax on Imports</a> 4-25-17 <br /><br /><b>CNBC</b>: <a href="http://www.cnbc.com/2017/04/25/trumps-tax-reform-plan-may-include-placeholder-for-border-tax-official-says.html">Trump's tax reform plan may include placeholder for border tax, official says</a> 4-25-17 <br /><b><br />Politico</b>: <a href="http://www.politico.com/story/2017/04/25/donald-trump-tax-plan-democrats-237575">Trump expected to include Democrat-friendly spending in tax plan</a> 4-25-17 <br /><br />Fox Business: <a href="http://www.foxbusiness.com/politics/2017/04/25/trumps-tax-duo-to-brief-senior-u-s-congress-leaders-on-plan.html">Trump's Tax Duo to Brief Senior U.S. Congress Leaders on Plan</a> 4-25-17 <br /><br /><b>Fox Business</b>: <a href="https://www.youtube.com/watch?v=RqltESE8Xtk&feature=youtu.be">Rep. Tenney: BAT Relies On “Some Elusive Presumptions”</a> 4-25-17 <br /><br /><b>Boston Globe</b>: <a href="https://www.bostonglobe.com/news/nation/2017/04/23/small-retailers-add-emotional-punch-bid-kill-border-tax-plan/zsig2EdHVzAAYSBJsW2BJK/story.html">Small retailers add emotional punch in bid to kill border tax plan</a> 4-24-17 <br /><br /><b>Washington Times</b>: <a href="http://www.washingtontimes.com/news/2017/apr/24/marsha-blackburn-doubts-border-adjustment-tax-will/">Marsha Blackburn doubts that border-adjustment tax will be part of overall plan</a> 4-24-17 <br /><b><br />Fox Business</b>: <a href="http://www.foxbusiness.com/features/2017/04/24/trump-wants-tax-plan-to-cut-corporate-rate-to-15-update.html">Trump Wants Tax Plan to Cut Corporate Rate to 15% -- Update</a> 4-24-17 <br /><br /><b>The Hill</b>: <a href="http://thehill.com/blogs/congress-blog/economy-budget/330195-why-americans-cant-afford-to-ignore-the-border-adjustment">Why Americans can’t afford to ignore the border adjustment tax</a> 4-24-17 <br /><br /><b>Seeking Alpha</b>: <a href="https://seekingalpha.com/article/4064456-bat-going-flames-time-buy-target">BAT Going Down In Flames, Time To Buy Target</a> 4-23-17 <br /><br /><b>Reporter Herald</b>: <a href="http://www.reporterherald.com/opinion/guest-columns/ci_30939966/border-adjustment-tax-could-devastate-colorado-importers">Border adjustment tax could devastate Colorado importers</a> 4-22-17 <br /><b><br />The Robesonian</b>: <a href="http://robesonian.com/opinion/98307/say-no-to-new-import-tax">Say no to new import tax</a> 4-22-17 <br /><b><br /></b></span><div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bloomberg.com/politics/articles/2017-04-21/trump-tax-plan-for-businesses-individuals-said-coming-next-week">Trump Plan Said Unlikely to Back Ryan’s Border-Adjusted Tax</a> 4-21-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Right Wisconsin</b>: <a href="http://www.rightwisconsin.com/opinion/perspectives/winners-and-losers-under-a-border-adjustment-tax">Winners and Losers Under a Border Adjustment Tax</a> 4-21-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/timing-of-release-of-donald-trumps-tax-plan-is-in-dispute-1492814948">Timing of Release of Donald Trump’s Tax Plan Is in Dispute</a> 4-21-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>NY Times</b>: <a href="https://www.nytimes.com/2017/04/21/us/politics/trump-order-takes-aim-at-tax-regulations-imposed-by-obama.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0">Trump Vows to Unveil Tax-Cut Plan Next Week, Surprising Staff</a> 4-21-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg:</b> <a href="https://www.bloomberg.com/politics/articles/2017-04-20/top-retailers-boost-spending-on-lobbying-amid-border-tax-battle">Target, Other Retailers Boost Lobbying in Border-Tax Battle</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bloomberg.com/politics/articles/2017-04-20/mnuchin-says-tax-overhaul-plan-will-still-happen-by-year-s-end">Mnuchin Says Tax Overhaul Will Happen by Year's End</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill</b>: <a href="http://thehill.com/homenews/administration/329607-poll-voters-support-controversial-border-adjustment-tax">Poll: Voters support controversial border-adjustment tax</a> 4-20-17</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Detroit News</b>: <a href="http://www.detroitnews.com/story/opinion/2017/04/20/nascimento-border-tax/100723830/">Column: Border adjustment tax would slam Mich. Economy</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>OC Register</b>: <a href="http://www.ocregister.com/2017/04/20/border-adjustment-tax-could-devastate-california-importers-and-jobs/">Border adjustment tax could devastate California importers and jobs</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Axios</b>: <a href="https://www.axios.com/gop-tax-reform-hearing-postponed-2370984338.html">GOP tax reform hearing postponed</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>C-SPAN2</b>: <a href="https://www.youtube.com/watch?v=HT6gK-fjAzs">Secretary Steve Mnuchin "concerned" on BAT</a> 4-20-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>NY Times</b>: <a href="https://www.nytimes.com/2017/04/19/opinion/why-are-republicans-making-tax-reform-so-hard.html?_r=1">Why Are Republicans Making Tax Reform So Hard?</a> 4-19-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Fiscal Times</b>: <a href="http://www.thefiscaltimes.com/2017/04/19/Behind-Campaign-Kill-Trillion-Dollar-Border-Adjustment-Tax">Behind the Campaign to Kill the Trillion-Dollar Border-Adjustment Tax </a> 4-19-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Penn Live</b>: <a href="http://www.pennlive.com/opinion/2017/04/a_border_adjustment_tax_would.html">A border adjustment tax would be bad news for Pa.: Nathan Nascimento</a> 4-19-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/do-you-want-reagans-economy-or-obamas-1492642774">Do You Want Reagan’s Economy or Obama’s?</a> 4-19-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>McClatchy</b>: <a href="http://www.mcclatchydc.com/news/politics-government/congress/article145569729.html">Congress’ top tax man isn’t waiting for Trump’s blessing to get going on an overhaul</a> 4-</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;">19-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Reuters:</b> <a href="http://www.reuters.com/article/us-usa-congress-brady-idUSKBN17K2F9?il=0">U.S. House panel to begin hearings on tax reform next week</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill</b>: <a href="http://thehill.com/policy/finance/329303-border-tax-fight-intensifies-on-tax-day">Border tax fight intensifies on Tax Day</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Freedom Partners</b>: <a href="https://freedompartners.org/latest-news/can-tax-reform-without-tax-hikes/">We Can Do Tax Reform Without Tax Hikes</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bloomberg.com/news/articles/2017-04-18/currency-traders-spot-fatal-flaw-in-republicans-border-tax-plan">Currency Traders Spot Fatal Flaw in Republicans' Border Tax Plan</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Forbes</b>: <a href="https://www.forbes.com/sites/robbmandelbaum/2017/04/18/heres-why-a-border-tax-wont-jack-up-import-costs-at-least-in-theory/#1c6c93e058ed">Here’s Why A Border Tax Won’t Jack Up Import Costs – At Least In Theory</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>AL.com</b>: <a href="http://www.al.com/news/montgomery/index.ssf/2017/04/club_for_growth_targets_martha.html">Club for Growth targets Martha Roby on border tax in new ad</a> 4-18-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Automotive News</b>: <a href="http://www.autonews.com/article/20170417/RETAIL07/304179946/border-tax-idea-isnt-dead-yet-execs-warn">Border tax idea isn't dead yet, execs warn</a> 4-17-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Star Tribune</b>: <a href="http://www.startribune.com/growing-st-paul-small-business-owner-worries-about-trump-border-tax/419516273/">St. Paul entrepreneur is no fan of border tax</a> 4-17-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Daily Record</b>: <a href="http://www.dailyrecord.com/story/opinion/letters/2017/04/17/border-adjustment-tax/100545830/">LETTER: Border adjustment tax could devastate NJ</a> 4-17-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bna.com/dollar-trees-price-n57982086754/">Dollar Tree’s $1 Price Point May Slip Under Border Adjustment</a> 4-17-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Texas Tribune</b>: <a href="https://www.texastribune.org/2017/04/17/cruz-concerned-democrats-will-trigger-government-shutdown/">Ted Cruz concerned Democrats will trigger government shutdown</a> 4-17-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/the-border-adjustment-sleight-of-hand-1492366244">The Border-Adjustment Sleight of Hand</a> 4-16-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Post and Courier</b>: <a href="http://www.postandcourier.com/business/border-war-south-carolina-manufacturers-debate-impact-of-import-tax/article_ee963f54-1ebc-11e7-94bb-87427a6e2da5.html">Border war: South Carolina manufacturers debate impact of import tax</a> 4-15-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>USA Today</b>: <a href="https://www.usatoday.com/story/money/cars/2017/04/14/automakers-speak-out-against-gops-border-adjustment-tax/100465058/">Automakers speak out against GOP's border adjustment tax</a> 4-14-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>CNBC</b>: <a href="https://www.youtube.com/watch?v=-ewq7yHX7TY">Rep. Steve Stivers criticizes BAT </a> 4-13-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>MSNBC</b>: <a href="https://www.youtube.com/watch?v=vh6565hq4FE">George Will: BAT is "complicated and no one knows"</a> 4-11-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Street</b>: <a href="https://www.thestreet.com/story/14081914/1/chief-economist-says-border-tax-is-basically-dead.html">IHS Chief Economist Says Border Tax 'Basically Dead'</a> 4-11-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.youtube.com/watch?v=CaB7TWuX8bs">Helfenbein: Border Adjustment Tax is a "bad idea" that could "kill jobs"</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill</b>: <a href="http://thehill.com/homenews/administration/328053-trump-starts-over-with-tax-plan-report">Trump starts over with tax plan: report </a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/white-house-plays-down-rifts-among-top-staff-1491852274">Donald Trump Tells Aides to Stop Fighting and Promote the Agenda</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Tax Analysts</b>: <a href="http://www.taxanalysts.org/content/nec-director-looks-beyond-august-passage-tax-reform">NEC Director Looks Beyond August for Passage of Tax Reform</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill</b>: <a href="http://thehill.com/policy/finance/328038-koch-backed-group-unveils-tv-ad-against-border-tax">Koch-backed group unveils TV ad against border tax</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Reuters</b>: <a href="http://ca.reuters.com/article/businessNews/idCAKBN17C0XM-OCABS">Volvo Cars concerned about possible U.S. import tax</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/trump-shifts-back-to-health-care-1492131535">Trump Shifts Back to Health Care</a> 4-13-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Examiner:</b> <a href="http://www.washingtonexaminer.com/retailers-start-new-attack-against-gop-border-adjusted-tax/article/2620253">Retailers start new attack against GOP border-adjusted tax</a> 4-13-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Business Wire</b>: <a href="http://www.businesswire.com/news/home/20170413006218/en/National-Retail-Federation-Launches-Phase-Campaign-Border">National Retail Federation Launches Next Phase of Campaign Against Border Adjustment Tax </a> 4-13-17</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>The Hill</b>: <a href="http://thehill.com/policy/finance/328456-trump-i-dont-like-the-term-border-adjustment">Trump: 'I don't like the term "border adjustment"'</a> 4-12-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Sourcing Journal</b>: <a href="https://sourcingjournalonline.com/border-adjustment-tax-opponents-make-a-run-during-recess/">Border Adjustment Tax Opponents Make a Run During Recess</a> 4-12-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Vox</b>: <a href="http://www.vox.com/policy-and-politics/2017/4/12/15258672/social-security-trump-tax-reform">Republicans are floating a tax reform plan that could threaten Social Security</a> 4-12-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Post:</b> <a href="https://www.washingtonpost.com/news/wonk/wp/2017/04/12/paul-ryans-tax-cuts-for-the-rich-could-cost-poor-countries-big-oxfam-says/?utm_term=.8712b2ba3668">Paul Ryan’s tax cuts for the rich could cost poor countries big, Oxfam says</a> 4-12-</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;">17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Phoenix New Times</b>: <a href="http://www.phoenixnewtimes.com/news/jeff-flake-and-john-mccain-think-paul-ryans-border-adjustment-tax-bad-idea-voters-agree-9238169?utm_source=dlvr.it&utm_medium=twitter">Lemons: Poll Shows Border Adjustment Tax Dumbest Idea Ever</a> 4-12-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Politico</b>: <a href="http://www.politico.com/tipsheets/morning-tax/2017/04/coming-to-a-recess-near-you-219714">Coming to a recess near you</a> 4-11-47<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Post</b>: <a href="https://www.washingtonpost.com/politics/trump-promised-an-unpredictable-foreign-policy-to-allies-it-looks-incoherent/2017/04/11/21acde5e-1a3d-11e7-9887-1a5314b56a08_story.html?utm_term=.16dceb2e87be">Trump promised an ‘unpredictable’ foreign policy. To allies, it looks incoherent.</a> 4-11-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WJBC</b>: <a href="http://www.wjbc.com/2017/04/11/brady-cautiously-optimistic-spending-plan-will-be-made-by-june/">Brady “cautiously optimistic” spending plan will be made by June</a> 4-11-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bloomberg.com/politics/articles/2017-04-11/germany-s-schaeuble-says-he-cautioned-mnuchin-against-border-tax">Germany's Schaeuble Says He Cautioned Mnuchin Against Border Tax</a> 4-11-17</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Washington Post</b>: <a href="https://www.washingtonpost.com/news/wonk/wp/2017/04/10/the-seniors-who-could-be-in-for-a-rude-awakening-if-paul-ryan-gets-his-way-on-taxes/?utm_term=.2aa1343bc7af">Seniors could be in for a rude surprise if Paul Ryan gets his way on taxes</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Chicago Business</b>: <a href="http://www.chicagobusiness.com/article/20170410/BLOGS02/170419989/paul-ryans-border-tax-would-whack-illinois?utm_campaign=SocialFlow&utm_source=Twitter&utm_medium=Social&utm_campaign=SocialFlow">Ryan's border tax would whack Illinois: study</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>CNBC</b>: <a href="http://www.cnbc.com/2017/04/10/border-adjustment-tax-could-prompt-foreign-firms-to-buy-us-companies.html">House tax proposal could make a lot of foreign companies start buying up US firms</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WTOP</b>: <a href="http://wtop.com/dc/2017/04/trump-taxes-president-scraps-tax-plan-timetable-threatened/">Trump-taxes: President scraps tax plan, timetable threatened</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Fox Business</b>: <a href="https://www.youtube.com/watch?v=RBzj1dm26oAToyota:%20BAT%20could%20cost%20customers%20$1,000">Toyota: BAT could cost customers $1,000</a> 4-10-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/trump-administrations-house-veterans-struggle-to-rally-support-in-chamber-1491748883">Trump Administration’s House Veterans Struggle to Rally Support in Chamber</a> 4-9-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/democrats-conditions-for-tax-overhaul-make-bipartisan-deal-unlikely-1491735604">Democrats’ Conditions for Tax Overhaul Make Bipartisan Deal Unlikely</a> 4-9-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Florida Politics</b>: <a href="http://floridapolitics.com/archives/235735-proposed-border-adjustment-tax-cost-florida-importers-millions">Proposed border adjustment tax would cost Florida importers millions</a> 4-8-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Zacks</b>: <a href="https://www.zacks.com/stock/news/255770/are-retail-stocks-a-buy-as-border-tax-plan-loses-steam">Are Retail Stocks a Buy as Border Tax Plan Loses Steam?</a> 4-7-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Financial Buzz</b>: <a href="http://www.financialbuzz.com/proposed-border-tax-to-negatively-affect-10-us-states-737370">Proposed Border Tax to negatively affect 10 Us States</a> 4-7-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Axios</b>: <a href="https://www.axios.com/trumps-new-economic-advisor-pick-disagrees-with-trump-a-lot-2350036086.html">Trump’s new economic advisor pick disagrees with Trump a lot</a> 4-7-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Houston Chronicle</b>: <a href="http://www.houstonchronicle.com/news/politics/us/article/Brady-faces-rocky-road-to-tax-reform-11058841.php">Brady faces rocky road to tax reform</a> 4-7-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>IAfrica.com</b>: <a href="http://business.iafrica.com/news/1047596.html">US border tax plan has auto giants on edge</a> 4-7-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>PJ Media:</b> <a href="https://pjmedia.com/trending/2017/04/06/bat-tax-intended-to-help-u-s-manufacturers-would-actually-hurt-them-study-finds/">BAT Tax, Intended to Help U.S. Manufacturers, Would Actually Hurt Them, Study Finds</a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Slate</b>: <a href="http://www.slate.com/blogs/moneybox/2017/04/06/paul_ryan_s_tax_reform_plan_is_all_but_dead.html">Paul Ryan’s Tax Reform Plan Was Actually Kind of Clever. It Never Had a Chance.</a> 4-6-17</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span><b style="font-family: Arial, Helvetica, sans-serif;">Reuters</b><span style="font-family: Arial, Helvetica, sans-serif;">: </span><a href="http://www.reuters.com/article/us-usa-tax-states-idUSKBN1780XV" style="font-family: Arial, Helvetica, sans-serif;">Conservatives attack proposed U.S. border tax</a><span style="font-family: Arial, Helvetica, sans-serif;"> 4-6-17</span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Bloomberg</b>: <a href="https://www.bloomberg.com/politics/articles/2017-04-06/michigan-would-take-hardest-hit-from-border-tax-plan-foes-say">Michigan Would Take Biggest Hit From Border Tax, Foes Say</a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Inc.</b>: <a href="https://www.inc.com/associated-press/house-gop-border-tax-reform-changes-import-taxes.html">House Republicans Want to Change Trump's Proposed Border Tax </a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Lombardi Letter</b>: <a href="https://www.lombardiletter.com/border-tax-plan-kill-us-economy-2017/9751/">The Border Tax Plan Could Kill the U.S. Economy in 2017</a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Business Report</b>: <a href="https://www.businessreport.com/article/border-adjustment-tax-hurt-louisiana-economy-americans-prosperity-report-says">‘Border adjustment’ tax would hurt Louisiana economy, Americans for Prosperity report says</a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>McClatchy</b>: <a href="http://www.mcclatchydc.com/news/nation-world/national/economy/article142963359.html">Texas will be negatively impacted by a border adjustment tax, study shows</a> 4-6-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Oregon Live</b>: <a href="http://www.oregonlive.com/business/index.ssf/2017/04/columbia_sportswear_takes_figh.html">Columbia Sportswear takes industry fight against GOP border tax to Capitol Hill</a> 4-5-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Politico</b>: <a href="http://www.politico.com/story/2017/04/tax-reform-freedom-caucus-236881">Freedom Caucus warns leadership on tax reform</a> 4-5-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Commercial Property Executive</b>: <a href="https://www.cpexecutive.com/post/what-the-gops-border-adjustment-tax-means-for-reits/">What the GOP’s Border-Adjustment Tax Means for REITs</a> 4-5-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>WSJ</b>: <a href="https://www.wsj.com/articles/white-house-takes-lead-role-on-tax-plan-1491428468">White House Takes Lead Role on Tax Plan</a> 4-5-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>CNBC</b>: <a href="http://video.cnbc.com/gallery/?video=3000607663">BAT tax will be a disaster: AAFA CEO</a> 4-5-17<br /><b><br /></b></span></div>
<div>
<span style="font-family: Arial, Helvetica, sans-serif;"><b>Nevada Appeal</b>: <a href="http://www.nevadaappeal.com/news/opinion/tim-wulf-comprehensive-tax-reform-will-grow-jobs-in-nevada/">Tim Wulf: Comprehensive tax reform will grow jobs in Nevada</a> 4-5-17<br /><br /><b>Bloomberg</b>: <a href="https://www.bloomberg.com/politics/articles/2017-04-04/ryan-s-border-tax-on-the-ropes-as-trump-ponders-overhaul-plan">Ryan’s Border Tax on the Ropes as Trump Ponders Overhaul Plan</a> 4-4-17</span><div>
<span class="lede-text-onlyhighlight1"><span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; font-weight: normal; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-hansi-theme-font: minor-latin;"><br /></span></span></div>
</div>
Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com0tag:blogger.com,1999:blog-1026439372356203883.post-61637731330415925252017-04-30T23:59:00.001-05:002017-04-30T23:59:11.071-05:00Trump Tax Plan Has a Long Way to Go, and the BAT is Still Breathing . . . .<a href="http://www.cnn.com/2017/04/26/politics/white-house-donald-trump-tax-proposal/">The one-pager released by the White House</a> is all there is for the Trump Tax Plan so far. The plan is long on candy (much lower corporate rates) but does not overdo it with details or any effort to address obvious issues. <a href="http://www.barrons.com/articles/trumps-big-tax-challenge-1493438774?mod=BOL_hp_we_columns">As Barron's notes</a> in this weekend's edition, the Trump plan's effort to imitate Reagan era cuts (and the Laffer Curve effect) fails for, among other reasons, because we are in a far worse situation on our national debt. At the time of the Reagan cuts, we had national debt of 25% of GDP, whereas today we have a ratio of 80%. In today's political environment, despite Trump bluster, this point is hardly likely to be overlooked. The mantra in Congress is "revenue-neutral", so you can expect little flexibility on this point.<br />
<br />
One must differentiate between Trump's bravado, and Mnuchin's confidence, and actual legislation. There is NO Republican coalition in the House to speak of, and one is not likely to appear anytime soon. If there were a reason to come together, the Republicans would have done it for Obamacare already. And that didn't happen . . . twice. Saying that they are together, and actually voting together, turns out to be two different things.<br />
<br />
In the absence of another solution, the BAT continues to breathe, however faintly. The reason is that there are few alternatives on the table to fund a reduction in corporate rates. <a href="https://www.bloomberg.com/politics/articles/2017-04-30/house-tax-panel-chairman-still-committed-to-border-adjusted-plan">Kevin Brady is still planning to hold hearings</a> on the BAT, sometimes later in May. He hasn't given up, no doubt because he hasn't been released from his pledge by Paul Ryan. The absence of the BAT from the Trump plan is apparently no impediment to Mr. Brady. So please don't count the BAT out just yet.<br />
<br />
The Republicans are making a mess of governing, on many levels, and this will have consequences. One interesting sidelight here is the impact of the ban on earmarks. <a href="http://www.cnn.com/2016/11/16/politics/house-republicans-earmarks/">Paul Ryan held the line against earmarks</a> with a "drain the swamp" justification last November. This sounds like a good idea but it also hobbles the Republicans from disciplining Congressmen who go their own way. When earmarks were part of the way of life in Congress, political bosses could rein in outliers like the Freedom Caucus by withholding local funding. Today, without such a lever, the rank-and-file have less reason to fall into line.<br />
<br />
At some point, this state of chaos and tail-chasing will result in some form of change. Will Ryan and Brady turn their attention elsewhere and drop the BAT? Will entitlements be restructured to balance out the tax cuts? [I think this is a golden opportunity, personally.] Will Ryan and/or Brady lose their job? Will the BAT make a comeback to solve a political problem? Let's hope not, but until another solution gains traction, the BAT remains Ryan's and Brady's solution to the many impediments to tax reform. <br />
<br />
Hey, they can't even line up on Obamacare reform so who knows how Republicans will get through tax reform. But until it's resolved, you can't rule out the BAT.Anonymoushttp://www.blogger.com/profile/16482040102402255749noreply@blogger.com1