Rep. Jim Jordan: America-First Tax Reform Begins with Dismissing a Border Adjustment Tax

Examiner (Washington, D.C.), The, June 7, 2017 | Go to article overview

Rep. Jim Jordan: America-First Tax Reform Begins with Dismissing a Border Adjustment Tax


Republicans have a once in a generation opportunity to pass real tax reform, resulting in a simpler, flatter, and fairer tax code for everyone.

Our guiding principles in this effort should be two-fold: first, letting families keep more of their money, and second, creating a tax code conducive to economic growth.

But some in Congress (whose guiding principle seems to be "more money for the federal government") want to use the tax reform bill to put a whole new tax on American businesses and consumers. This "border adjustment tax" would impose a 20 percent tax on any product brought into the United States, resulting in higher prices for everyday products.

The border adjustment tax would not only apply to finished products, but also to supplies, parts and components that cross the border during the manufacturing process. This results in a big hidden cost that is passed along to American consumers.

Proponents say that adding a border adjustment tax will make sure the tax reform legislation is "revenue neutral." That is Washington-speak for keeping the overall tax burden the same, but changing who pays the bill. It's been my experience that when it comes to changes like this, the "connected class" in Washington typically gets a good deal and the middle class gets a bad one.

Everyone knows our current tax code is broken. Roughly half of the population doesn't participate in the main tax on personal income, and U. …

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