“David Shepardson” and “Ginger Gibson” report that the United States’ companies even the “major exporters” like General Electric Co. and Boeing Co. have entered into a coalition for supporting the tax plan on “all imports” suggested by the House of Republican. The justification given for this stance is that the said scheme would “support American jobs and American-made products”.
The above mentioned alliance consists of over twenty five U.S. companies and has been named the “American Made Coalition”, whereby including Dow Chemical Co., Eli Lilly and Co., Pfizer Inc. and Oracle Corp. The launch of this group highlighted a “growing division in corporate America” over the proposal of Republican House suggesting to reduce “corporate income tax” to twenty percent from thirty five percent, besides excluding revenue generated from export as taxable, while imposing a twenty percent tax on “imports”.
However, the president’s signal has not been a clear one demarcating “border taxes”, while the proposal of the House could meet with hurdles in the Senate as some Republicans are of the questioning on the possibilities of the prices soaring up in the U.S. market both for the businesses and consumers alike.
Companies like Best Buy Co Inc. and Target Corp. have “rely heavily on imports”. According to these companies imposing a “border tax” would overshadow the advantages of a “lower headline corporate tax”. On the other hand, companies like Boeing, who are net exporters, think that the proposal would be to their “benefit”. One of the coalition’s spokesperson said:
“American workers and businesses are not competing today on a level playing field with foreign competitors because of an outdated and unfair tax system”.
According to the group, the present tax structure “unfairly subsidizes imports of foreign goods”, while Reuters added:
“Many of the companies in the coalition – including Boeing and GE – successfully formed their own group in 2015 to save the Export-Import Bank, a government-backed loan program that helps foreign buyers purchase American exports”.
Moreover, there also has been a launch of a separate coalition of the “Retail Industry Leaders Association”, representing over hundred twenty “trade associations and companies”, in order to oppose the tax proposal of “border adjustment” suggested by the Republican House. In the words of the group’s President, Sandy Kennedy:
“The border adjustable tax is harmful, untested, and would put American retail jobs at risk and force consumers to pay as much as 20 percent more for family essentials”.
Oil refiners, retailers and “foreign automakers” like Toyota Motor Corp. siding with the Congress as they fear that “a big tax on imports” could affect their sales and profit margins, while putting them at a disadvantageous position in comparison to their “rivals” who are “more reliant on U.S.-made products”. A flyer circulated by Best Buy among the lawmakers quotes a forecast of an analyst which says:
“…a 20 percent tax would wipe out the company's projected annual net income of $1 billion and turn it into a $2 billion loss”.
References:
http://www.reuters.com
The above mentioned alliance consists of over twenty five U.S. companies and has been named the “American Made Coalition”, whereby including Dow Chemical Co., Eli Lilly and Co., Pfizer Inc. and Oracle Corp. The launch of this group highlighted a “growing division in corporate America” over the proposal of Republican House suggesting to reduce “corporate income tax” to twenty percent from thirty five percent, besides excluding revenue generated from export as taxable, while imposing a twenty percent tax on “imports”.
However, the president’s signal has not been a clear one demarcating “border taxes”, while the proposal of the House could meet with hurdles in the Senate as some Republicans are of the questioning on the possibilities of the prices soaring up in the U.S. market both for the businesses and consumers alike.
Companies like Best Buy Co Inc. and Target Corp. have “rely heavily on imports”. According to these companies imposing a “border tax” would overshadow the advantages of a “lower headline corporate tax”. On the other hand, companies like Boeing, who are net exporters, think that the proposal would be to their “benefit”. One of the coalition’s spokesperson said:
“American workers and businesses are not competing today on a level playing field with foreign competitors because of an outdated and unfair tax system”.
According to the group, the present tax structure “unfairly subsidizes imports of foreign goods”, while Reuters added:
“Many of the companies in the coalition – including Boeing and GE – successfully formed their own group in 2015 to save the Export-Import Bank, a government-backed loan program that helps foreign buyers purchase American exports”.
Moreover, there also has been a launch of a separate coalition of the “Retail Industry Leaders Association”, representing over hundred twenty “trade associations and companies”, in order to oppose the tax proposal of “border adjustment” suggested by the Republican House. In the words of the group’s President, Sandy Kennedy:
“The border adjustable tax is harmful, untested, and would put American retail jobs at risk and force consumers to pay as much as 20 percent more for family essentials”.
Oil refiners, retailers and “foreign automakers” like Toyota Motor Corp. siding with the Congress as they fear that “a big tax on imports” could affect their sales and profit margins, while putting them at a disadvantageous position in comparison to their “rivals” who are “more reliant on U.S.-made products”. A flyer circulated by Best Buy among the lawmakers quotes a forecast of an analyst which says:
“…a 20 percent tax would wipe out the company's projected annual net income of $1 billion and turn it into a $2 billion loss”.
References:
http://www.reuters.com
