Border Adjustment Tax

The Alabama Retail Association is part of the Americans for Affordable Products, a coalition united against higher prices on everyday necessities.  We oppose border adjustment, because this tax policy will increase the cost of clothing, food, medicine, gas and other essential items Alabamians and other Americans rely on daily. The more than 4,000 members of the Alabama Retail Association support comprehensive tax reform as well as buying American; however, we live in a global economy with global supply chains essential to giving customers products at affordable prices. We urge Congress to implement policies that help businesses of all sizes, protects and creates jobs and promotes prosperity for all Americans.

July 27, 2017
: Retailers cheer the death of the border adjustment tax

What border adjustment is and is not

  • Border adjustment is a component of the U.S. House Republican tax reform plan known as “A Better Way,” or the Republican tax reform blueprint.
  • It is not yet legislation, but is expected to be introduced soon. It will be assigned to the U.S. House Ways and Means Committee.
  • Border adjustment changes how the United States collects corporate taxes. It applies the tax based on where a product is consumed. Under border adjustment:
    • The cost of imports would no longer be deductible.
    • Exports would not be subject to U.S. tax.
    • The “Better Way” plan couples border adjustment with lowering the federal corporate income tax rate to 20 percent. The current rate is 35 percent.
  • Border adjustment taxes will increase the cost of imported goods.
  • Many goods sold in the United States are neither grown, manufactured nor mined here. Many of those goods, including food and medicine, would see up to a 20 percent cost increase under border adjustment.

The impact of border adjustment

  • HIGHER PRICES: Over the first 10 years, consumers would pay $1 trillion more for many necessities that are not grown or manufactured in America. American families could pay $1,700 more on essential products each year.
  • LOSS OF RETAIL JOBS: Retailers employ 1 in 4 Alabamians. Many retail businesses in our state would be forced to close since their tax bill would exceed what Alabama consumers can pay.
  • EXAMPLESThe Wall Street Journal explains border adjustment in a graphic.

Tell Congress No to Border Adjustment 
(Log in with the Americans for Affordable Products and send a letter
to Alabama’s U.S. senators and your U.S. representative)