One week ago, we wrote that “Two Wars Are About To Break Out Over Border Adjustment Tax“: one of which would include a group of opposing Republican Senators (and their lobbyists), and US retailers and importers, and a second which would be waged between the US and all of its major trading partners.
Today, the war against BAT fired its first salvo, when the previously profiled Senator David Perdue of Georgia, former CEO of discount retailer Dollar General, emerged as the top Republican critic of the House GOP plan to adjust business taxes at the border, threatening the divisive proposal’s legislative prospects. Unlike other members of the upper chamber, Perdue has harshly criticized the tax idea in the press and actively tried to sway his colleagues against it.
In a letter issued on Wednesday, Perdue wrote that “this 20-percent tax on all imports is regressive, hammers consumers, and shuts down economic growth.”
Perdue said he supports three of the major ideas in the House Republicans’ plan: simplifying the individual tax code, lowering the corporate tax rate and making it easier for companies to bring foreign earnings back to the U. S. But he said that the border-adjustment tax would raise consumer prices.
“This would hammer consumer confidence and lower overall demand, thus putting a downward pressure on jobs,” he said.
This post was published at Zero Hedge on Feb 9, 2017.