Bloomberg reports that General Electric, Boeing and Pfizer "are among about two dozen companies that have formed the 'American Made Coalition,' a group representing makers of domestic goods that will promote efforts to overhaul the U.S. tax code. They say the so-called border-adjusted tax would help U.S. manufacturers compete with products made overseas, giving a boost to President Donald Trump’s goal of increasing factory jobs."
The formation of the group is seen as a direct response to the decision by 120 trade groups and retailers - including Walmart - to back a campaign called "Americans for Affordable Products" that is designed to fight against any border tax.
“I respect Wal-Mart, but we’re going to have a different perspective on tax reform as Wal-Mart,” says GE CEO Jeffrey Immelt. “I think all of our voices need to be heard.”
According to the story, "Opponents of the border-adjusted tax say it would force companies to pass the increases to customers -- boosting prices for everything from food and clothing to gasoline and auto parts -- without sparking a resurgence of domestic manufacturing." Supporters of a border tax say that "the proposed tax changes would help domestic manufacturers and contribute to Trump’s goal of boosting jobs in the US."
The formation of the group is seen as a direct response to the decision by 120 trade groups and retailers - including Walmart - to back a campaign called "Americans for Affordable Products" that is designed to fight against any border tax.
“I respect Wal-Mart, but we’re going to have a different perspective on tax reform as Wal-Mart,” says GE CEO Jeffrey Immelt. “I think all of our voices need to be heard.”
According to the story, "Opponents of the border-adjusted tax say it would force companies to pass the increases to customers -- boosting prices for everything from food and clothing to gasoline and auto parts -- without sparking a resurgence of domestic manufacturing." Supporters of a border tax say that "the proposed tax changes would help domestic manufacturers and contribute to Trump’s goal of boosting jobs in the US."
- KC's View:
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I believe in encouraging American companies to actually make products in America. I'm no tax expert, nor am I an economist, but I kind of wish there were a way to create incentives to make things in the US without taxing imported products, which a reasonable number of people seem to think will help create a trade war.
