This current presidential administration has proposed to drastically change the tax on American imports, to which they have. Reforms to border tax and tariffs have brought droves of criticism.
Executives from across the country have voiced their opinions as to the effect of such reform, recently creating the American Made Coalition. Their primary goal has been to rethink the current structure that reduces export costs while raising the cost of imports.
Paul Ryan has stated his support for the group, whose plan calls for a cut from 35 to 20 percent on the corporate tax rate. It would also allow for the cost of production to be deducted from a businesses’ taxable income.
In comparison, President Trump stated the intent of dropping the rate to 15 percent during his campaign.
Making their voices known, the AMC has already sent a letter to leaders of the house and senate.
“We applaud your efforts to pursue tax reform that is both big and bold. Incremental tweaks will not level the playing field for American workers or dramatically reinvigorate economic growth,” the letter states.
Promoting this further, it goes on to add that, “This reform is consistent with the tax policies of nearly every other country in the world, and it would effectively end the ‘Made in America’ tax that creates an unfair advantage for foreign-based companies at the expense of U.S. jobs and economic growth.”
In opposition, the Coalition for Affordable Products believes this change would only stand to raise prices for consumers. The group is primarily composed of large retailers who all flew to Washington to emphasize their disapproval.
Currently, all of the America is waiting anxiously to find out what Trump’s final proposal will entail. While there is no way to assume what his course of action will be regarding this hot topic issue, the country will have to sit tight as our tax system faces one of the most monumental overhauls in decades.