U.S. Rep. Kevin Brady (R-TX), chairman of the House Ways and Means Committee, recently proposed a five-year gradual roll out of the proposed 20 percent Border Adjustment Tax (BAT), which Brady said would solve BAT’s challenges.
If enacted, BAT will cost households an additional $1,700 annual as the cost of goods would increase. Brady and other BAT supporters believe the value of the dollar will rise and offset any additional costs to customers.
The proposal is opposed by the Auto Care Association, which represents 150,000 independent automotive businesses.
“There is no tweaking, modification or transition period that will negate the harmful effects of the BAT tax,” Bill Hanvey, Auto Care Association president and CEO, said. “It is very concerning that Chairman Brady is ignoring the damage the BAT will do to American consumers and the automotive industry. No matter what he proposes, consumers will foot the bill and numerous family-owned businesses in the auto care industry will suffer catastrophic losses. The chairman should move on, leave the BAT behind and let real tax reform begin.”
The association is a member of Americans for Affordable Products, a national coalition of 500 associations and business opposing BAT.
Opponents said BAT is nothing more than a middle-class tax hike.