The National Retail Federation (NRF) welcomed the announcement by congressional and administration leaders that they are committed to passing comprehensive tax reform that lowers rates without creating a new border tax. The 20% border adjustment tax included in the “Better Way” tax reform plan proposed last year by House Speaker Paul Ryan (R-Wis.) and Ways and Means Committee Chairman Kevin Brady (R-Texas), would effectively move the U.S. toward a consumption tax structure rather than the current income tax structure. The BAT provision would end importers’ ability to deduct the cost of merchandise purchased from other countries, resulting in higher prices for consumers. NRF estimates doing so could cost the average family as much as $1,700 a year.
“[The] update on the status of tax reform is very encouraging, particularly since the border adjustment tax is no longer under consideration,” said Matthew Shay, NRF president and CEO. “By removing this costly element of reform, the way has been cleared for swift action on a middle-class tax cut that will put more money in the wallets of the American taxpayer. Changing our outdated tax code is fundamental if we are to grow our economy, encourage investment, and create jobs.”
For more information, visit https://nrf.com.