Chairman Brady on CNBC Makes the Case for Ending the Made in America Export Tax
- by: GilRodriguez
- 2017-01-19
- Source:
texasinsider
- 01/08/2020
Brady: For the first time well be on a level playing field with China and our competitors. For the first time we will have eliminated any tax incentives to move jobs or research or headquarters overseas.
Why We Must End the Made in America Export Tax:
Because we know what our competitors do. We know China Europe Mexico Canada others all border adjust their taxes. We dont. But were about the only country left that doesnt of major size. As a result today Chinese steel has a tax advantage over American steel. Mexican beef and autos has an advantage over American beef and autos. Foreign oil over U.S. oil. That cant continue. This border adjustable tax is a very simple tax but its powerful in the way it works.
How It Will Work:
This is a very simple policy. Is it consumed in the U.S.? Is your product or service consumed in the U.S.? If it is its taxed equally regardless of where it is produced ...
So for the first time well be on a level playing field with China and our competitors. For the first time we will have eliminated any tax incentives to move jobs or research or headquarters overseas.
Once businesses understand its not a VAT and you dont have to track it transaction by transaction ... At the end of the year a business adds up its export sales and doesnt count it as income. At the end of the year it adds up its import costs and doesnt count them as expenses. Thats the border adjustable tax. It is that simple. Businesses already add those up as you would imagine. By doing that simple but powerful thing for the first time exports and imports are taxed equally in America. Were no longer taxing our exports around the world. Now were competitive again ...
Its important we look at these bold changes were proposing and understand we dont expect things to change on a dime. Were going very bold so we can be competitive for a long time. Were working with importers for example to design the transition on border adjustability to make sure were accommodating their concerns. Were growing this economy in a big way. We want imports and exports not only to be taxed equally in America. We think theyre equally important to our country. Im confident that we can move this provision forward. At the end of the day without it America will continue to have incentives for jobs and manufacturing to leave the country. None of us want that.
How It Will Grow the Economy:
We know we get one chance a generation to fix this broken tax code. We are determined to leapfrog into the front the lead pack the most pro-growth places on the planet to add that new job or make that new investment. Thats why the discussions were having are so critical ...
In fact let me predict this. If we pass this blueprint working with the Trump Administration in a very bold way well re-establish America as a 21st century magnet for new jobs and new business investment.
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