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By Juliegrace Brufke
House Ways And Means Committee Chairman Kevin Brady assured the border adjustment tax won’t hurt small businesses or lead to job losses during a discussion at the Conservative Political Action Conference Friday.
Border adjustability, which would tax imports but not exports, is a key component of the House GOP’s “A Better Way” blueprint on tax reform if they want to keep it revenue neutral, generating an estimated $1 trillion or more in revenue over the course of a decade.
While critics have argued the tax could lead to hardships for American taxpayers and small businesses, Brady assured the way they designed it will even the playing field in the world marketplace and stimulate the economy.
“Let me tell you the principle here , the principle here is: should all businesses play by the same rules? Should all products be taxed exactly the same in America?” he said. “Because today our tax code gives special tax breaks to foreign products over made-in-America.”
Brady noted the majority of other countries use a territorial system, arguing the United States needs to shift its policy if it wants to become more competitive in the global marketplace. The Texas Republican said the country’s current tax rates are driving businesses abroad, adding he believes lifting the tax burden on domestic products could help bring jobs back to the U.S.
He said he thinks the GOP’s blueprint is more effective than a border tariff in helping the country get ahead.
“So, tariffs are about trade policy and tend to match what our competitors do — our tax policy unfortunately doesn’t,” he continued. “You know we give a huge advantage to China and Mexico, Canada and Europe today, and so what we’re proposing is to no longer just sit idly by and watch our jobs and our plants move overseas.”
The plan will jump-start economic growth and help stimulate job creation, according to Brady.
“We know, not only does it grow from jobs in America, not only does it stop businesses from moving overseas — it restores America as the best place on the planet to create that new job, or build that new manufacturing plant, or come up with that medical breakthrough,” Brady said.
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