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ACA Expresses Disappointment with Transition Period for Border Adjustment Tax

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June 15, 2017—The Auto Care Association (ACA) expressed its disappointment this week that U.S. House Ways and Means Committee Chairman Kevin Brady, R-Texas, proposed a five-year transition plan for the Border Adjustment Tax (BAT) that is intended to subdue the BAT critics.

The proposed tax on imports would significantly increase auto repair and maintenance costs for the average car owner in the United States, ACA claimed, while the BAT, which would impose a new 20 percent tax on imported goods and services, would result in a $20 billion per year tax increase on automotive parts. 

“There is no tweaking, modification or transition period that will negate the harmful effects of the BAT tax,” said Bill Hanvey, president and CEO, ACA. “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.”

ACA is part of Americans for Affordable Products, a national coalition of 500 businesses and trade associations that are opposing the BAT. In addition to the higher auto repair costs it would create, the BAT is estimated to cost the average American family $1,700 per year in higher prices on everyday consumer items, such as gasoline, groceries, clothing, shoes and prescription medicines.

“This tax hike would burden middle class households who have seen their wages stagnate in recent years, while enabling profitable, multi-national corporations that already avoid paying their fair share of taxes to operate virtually tax-free,” said Hanvey.  

 

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