Yesterday, House Speaker Paul Ryan visited a manufacturing plant near Columbus, Ohio to talk about something our country has desperately needed for a very long time—tax reform.
Making the tax code simpler, fairer and flatter would allow hardworking American families to keep more of their hard-earned money and American businesses to compete with the rest of the world while spurring overall economic growth.
Speaker Ryan has a plan that he thinks can accomplish all this, and in many ways he is correct. But as Ohio State Director Micah Derry points out in yesterday’s edition of The Columbus Dispatch, not everything about the Speaker’s plan would be great for Ohio and the rest of the country:
Unfortunately, the proposed “border adjustment tax,” which the Speaker supports, is standing in the way. At a time when lawmakers should be uniting around policies that promote prosperity and opportunity, this provision does just the opposite.
This border adjustment tax would impose a new 20 percent tax on all goods imported into the United States, whether they be finished products, component parts, or raw materials. Not only would this raise the price that Americans must pay for everyday items, it would have a devastating impact on the manufacturing sector that provides the backbone of Ohio’s economy.
Manufacturers in the United States are rarely able to procure all the equipment or raw materials they need from U.S. sources.
Many rely on imported machines, computers, and other tools to manufacture American products. These sorts of capital goods made up a quarter of all imports last year — and they would all face a significant tax hike with border adjustment.
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Watch the video below to learn more about how the BAT would be a disaster for American consumers and businesses.