SPECIAL EDITION: Border Adjustment Tax
Stop the BAT with a Dealer Visit
QUESTION: Has your Member of Congress been to your store(s) in the last two years?
If the answer is NO, sign up TODAY to Host a Dealer Visit. AIADA will do the legwork for you to make the process as simple as possible. Members of Congress will be at home in their districts for two weeks in mid-April and it’s not too late to get a Dealer Visit on the schedule. But, time is running short, so don’t delay!
Inviting your Member of Congress to visit your dealership may sound intimidating. In reality, it’s a great, simple way to forge a meaningful relationship with those elected to represent you in Washington. It couldn’t be timelier as the House of Representatives prepares to turn its attention on tax reform and movement on the border adjustment tax. Check out AIADA’s Dealer Visit Handbook for tips and more information.
If the answer is YES, good for you! You are taking an active role in shaping policy decisions that will affect your business. But, it’s important to continue the dialogue with your Representative. If you haven’t already, reach out to the legislator that visited with you, remind them that you appreciated their visit and make sure they know that the BAT would be devastating to dealers across the country, as well as the consumers you serve. AIADA can provide you the appropriate contact information and any other information you need to do your outreach. Contact GovernmentRelations@aiada.org to get started!
Join the Fight to Stop the BAT
CLICK HERE to send a letter to your Member of Congress.
Now, share this with another dealer; get them to send a letter. Next, share it with your General Manager; get them to send a letter. And then, share it with your Sales Manager; get them to send a letter. Together we all must keep up the fight!
Here’s What YOU AUTO KNOW…All About the BAT.
If you missed this week’s webinar on the BAT, don’t worry, you can view the presentation here:
What Could the BAT Mean for Your Dealership?
Or CLICK HERE to learn more about the BAT.
Quotes of the Week
“The Border Adjustment Tax will push the cost of a new car out of reach for middle class consumers, who will already be saddled with higher costs on everyday necessities like food, clothing and medicine. Regardless of whether you buy American or foreign-made cars, costs will increase under the BAT.”
- George Sharpe Jr., General Manager of The Sharpe Collection (KeepAmericaAffordable.com)
"The million-plus small retail companies in the U.S. would be hit especially hard by the BAT, and many would be forced to lay off employees or even close their doors."
- David French, Senior Vice President for Government Relations, National Retail Federation (CNBC)
“Trump should repeat his objections to a border adjustment tax that would favor the interests of some businesses over others. He can help make U.S. corporations great again by weaning them off subsidies and reducing their tax burdens.”
- Barron’s Magazine
Border Tax Has Become a “Given,” Chief GOP Tax Writer (CNBC.com)
A border adjustment tax will probably make an appearance in the final tax reform plan, the Republicans' chief tax writer in the House of Representatives, Rep. Kevin Brady, told CNBC on Tuesday.
"My sense is that border adjustability has become a given. That it will be part of the final tax reform plan and now the discussions are how can it be designed in transition in a very positive way for importers," the chairman of the House Ways and Means Committee said on "Squawk Box."
"Because for the rest of businesses, and I would say for importers as well, looking at this strong economy, taxing everyone equally in the U.S., eliminating any tax incentives to move overseas and making sure made in America products can compete around the world ... everyone wants that in the final tax reform plan," he said.
A border adjustment tax, which would levy fees on imports, is a core part of a broad tax reform "blueprint" being pushed by House Republicans, including Speaker Paul Ryan and Brady.
To read more from CNBC.com, please click HERE.
Barron's: Kill Border Tax Before It Kills Us (Newsmax)
Taxing imports as a way to make U.S. companies more competitive with foreign factories will hurt consumers -- and isn’t the best way for the federal government to chip away at a trillion-dollar deficit, according to Barron’s magazine.
Republicans who have proposed the “border adjustment tax” should focus on cutting spending, eliminating corporate welfare and cutting other taxes as a way to boost the economy and shrink the deficit, Barron’s says.
“The BAT is a bad idea, and it should be scrapped,” the magazine says. “If all corporate welfare were cut from the budget, as much as $100 billion a year could be saved, about matching the total expected from the BAT.”
The BAT is part of a plan by Speaker of the House Paul Ryan to change the tax code in a sweeping overhaul. The levy is aimed at boosting U.S. factory production by taxing imports while exempting U.S. companies from taxation on their export revenues.
To read more from Newsmax, please click HERE.
Retail CEO Warns of 85% Tax Rate Hike Under Border Tax (CNBC.com)
As corporate America prepares for the possible implications of a border adjustment tax, Kohl's CEO warned that his company's tax rate could surge as much as 85 percent and consumers could pay much more for the things they buy.
"The calculus on that — probably 75 percent to 85 percent is probably about right for us," the department store's chief, Kevin Mansell, said on CNBC's "Power Lunch."
Currently, the corporate tax rate stands at about 35 percent, but the border adjustment tax that House Republicans are advocating would tax imports in a move aimed at discouraging imports to the U.S. and bolstering U.S. manufacturing. Such a levy would drive the total tax paid for import-heavy companies, such as retailers, considerably higher.
"Over time, I'm sure we'll figure ways to navigate through higher tax rates," he said. "It is a bad thing for our P&L for sure. But the pricing impact for customers, to me, is what is harmful."
To read more from CNBC.com, please click HERE
This Week in Trade & Tax News
AAP Calls on MI’s Congressional Delegation to Oppose the Border Tax (KeepAmericaAffordable.com)
If the US Wants High End Manufacturing, It Needs Imports (CNBC.com)
Border Tax Could Raise Car Prices for U.S. Consumers by $2,000 (The Globe and Mail)
Border Tax Battle Escalates With Ads Targeting 13 GOP Lawmakers (Morning Consult)
This Week in Auto News
A New Era for Nissan Design (Automotive News)
Porsche Rakes in $17,250 on Every Car It Sells (The Truth About Cars)
Do the Math: Older Used Cars in Short Supply (The Detroit News)
Watch the latest video from the American Made Coalition, proponents of the BAT.
Interior Trunk Release Saves AL Woman
Not very funny, but feel-good news out of Alabama this week as a woman was able to escape a robbery and kidnapping attempt by using the light on her insulin pump to pop the interior trunk release latch of her moving Nissan Altima and running to safety.
Read more from the NY Post or watch the video HERE.
Lawmakers – They’re Just Like Us!
On Thursday, the day of the aborted vote on the American Health Care Act (AHCA), a group of moderate Republicans known as The Tuesday Group, met over seven boxes of pizza from Capitol Hill haunt “We, The Pizza” with sides of Doritos and Baked Lays. (CNN)