Auto industry leaders recently met with Gary Cohn, director of the National Economic Council, who spoke at an Automobile Industry Tax Reform Listening Session at the White House, where leaders were also able to meet with Vice President Mike Pence.
The leaders expressed concern over the Trump Administration’s proposed border adjustment tax (BAT), a tax that would raise the cost of new vehicles by $2,000.
BAT would tax all imports while exempting imports. Proponents say it will encourage businesses to move back to the United States while opponents worry it will result in unnecessary price increases.
“After sharing our ideas for tax reform, we were pleased to hear that the administration largely agrees with ASA on these issues, specifically when it comes to reducing the tax burden for small businesses,” Automobile Service Association (ASA) board member Bob Wills said.
Cohn said the White House has not made a decision on international taxes and that lawmakers would take into account feedback from the business community.
Since the Administration’s tax plan proposal was released in April, the White House has been meeting with business leaders to discuss the impact of tax reform.
The current regulations and tax policies make competition difficult, Cohn said, and that the revamped tax system will stimulate economic growth.