Tuesday, May 23, 2017

Kevin Brady touts border tax: ‘True competition for the first time’

Via Billy

Ways and Means Chairman Rep. Kevin Brady and other House Republicans are counting on revenue generated by the border adjustment tax to help fund a massive reduction in income tax rates. (Associated Press)

House Ways and Means Chairman Kevin Brady mounted a renewed defense Tuesday for including a border adjustment tax in the Republicans’ proposed tax overhaul, but he is facing increasing defections from members of his party who say the tax is complicated and will end up socking consumers.

Seeking to inject new life into the proposal, Mr. Brady acknowledged “fair concerns” about it and said there is merit to the idea of phasing in the tax to give the economy time to adjust.

“I’m confident that we can bring forward the designs [and] the transition — very deliberate, very generous, including incorporating some of those issues in a way that we not just address it in the short term,” Mr. Brady, Texas Republican, said at an event hosted by the Peter G. Peterson Foundation.

A 20 percent border tax has become a centerpiece of the House Republicans’ tax overhaul, with Speaker Paul D. Ryan and other leaders saying it will level the playing field with other countries that impose similar taxes and protect American manufacturers.


  1. Ian Fletcher didn't like the "border tax" proposal: http://www.huffingtonpost.com/ian-fletcher/the-gop-tax-plan-is-bonke_b_14711208.html

    I've likely linked to that before, but I just say: It's likely still a bad plan.

    It's good they're focusing on trade though.

    More recent article quote: "Labor costs are a key factor in the corporate decision to shift production to Mexico. The UAW cites a figure of $3.95 an hour as the pay of an average Mexican autoworker. We think this may be too high, as a recent well-researched Bloomberg News investigation concluded the real figure is just $2.04."


    When we're aiming for a return to (inflation adjusted) $15 minimum wage, Mexico pays $2, and other parts of the world pay less: we've got serious problems. And add to that the de facto "wages"/benefits we receive from the federal government and costs of the empire: We likely couldn't compete working 80hr shifts at $2/hr.

    1. Thanks. https://freenorthcarolina.blogspot.com/2017/05/mexico-2hr-wages-upcoming-commerce.html