Tax Reform Soon: White House Still Undecided On Key Issue

Tax Reform Soon: White House Still Undecided On Key Issue

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On Wednesday, representatives from the automobile industry met with National Economic Council Director Gary and raised their concerns in regards to the Republicans’ proposal for border-adjustment tax.

President of the American International Automobile Dealers Association, Cody Lusk stated, “America’s international nameplate dealers fully support federal tax reform but remain deeply opposed to the [border-adjustment tax] provision, which would drive up the cost of every vehicle on their lots by an average of $2,000 per vehicle.”

“We were grateful to have an opportunity to share our perspective with the White House, and we are optimistic that a well-crafted tax reform bill, minus the BAT, can make its way through Congress and to the president’s desk for his signature,” he added.

The administration had been actively meeting with groups from the auto industry, ever since they released their tax plan, back in April.

“Today’s meeting with stakeholders from the automobile industry is another step towards delivering comprehensive tax reform for the American people,” Cohn stated. “The White House continues to hear from business leaders across all industries that the tax and regulatory climate in this country makes it increasingly difficult to be competitive. The president and this administration remain committed to creating a tax system that will spur economic growth and bring jobs back to America,” he added.

The White House is yet to mention as to whether they shall be considering to include the border-adjustment tax in their tax bill. The border adjustment proposal that imposed a tax on imports while, exempting exports, was a part of the tax plan that was released by the House Republicans last year. While, its supporters would argue that it encourages companies to bring jobs back into the United States, it is still up for debate as to whether it can result in higher prices of goods.

John, Bozzella, CEO and president of Association of Global Automakers expressed his concerns by stating, “To grow our highly innovative and globally competitive auto industry, it is imperative that the BAT not be part of any tax reform proposal.”