Senate Finance Chairman Has 'Real Reservations' on Border Adjustability
Senate Finance Committee Chairman Orrin Hatch, R-Utah, noted there are some significant issues that remain before the Senate would agree to the border adjustment tax being discussed in the House, during a Feb. 28 interview with CNBC (here). Hatch said…
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that the House GOP's border-adjustable tax plan is worth considering but that definitive details have yet to emerge. "The House seems to want it, or at least some people in the House want it, and I have some real reservations about it, but I'm open to good ideas from wherever they come," Hatch said. Tax reform has a long way to go and it will be difficult to pass it through both bodies, he said. Bloomberg reported (here) on Feb. 28 that House Speaker Paul Ryan, R-Wis., has won White House chief strategist Steve Bannon's support on border adjustability. Americans for Affordable Products, an anti-border adjustability coalition, wrote a letter (here) to House and Senate leaders stating that the proposal would raise "effective tax rates for many companies to well over 100%," and hand down the costs of raised taxes to U.S. consumers. The coalition includes the American Apparel and Footwear Association, the National Retail Federation and the Travel Goods Association, among many others. The White House and Ryan's office didn't immediately comment.