Industry News

Early indications are the GOP tax plan has weak support among Republican House members

May 18, 2017

In an early tally - the GOP tax plan and its border tax appear to have limited support among Republicans, most of which are not yet taking a public position. Some are saying the border tax issues are divisive even among fellow Republicans. Since there…

More hearings on tax reform in the House next week

May 17, 2017

The House Ways and Means committee has scheduled more hearings on tax reform for Tues May 23rd next week. This follows on the already scheduled hearing set for Thurs 18th. Both hearings will are set to focus on the GOP tax reform plan in general…

Phase in Approach to Border Tax Could Take Away the Sting

May 16, 2017

As we've discussed in this blog previously, the currency effect, (the increase in the relative value of the dollar), is expected by leading economists to accompany the implementation of any border tax. A phase in of the border tax would likely cause an increase in…

Ways and Means committee holds hearings this week on Tax reform

May 15, 2017

The outcome of these hearings may give an indication of the likelihood of tax reform legislation getting done this year. I'd also expect the contentious Border Tax issue to be addressed. House panel to kick off tax reform hearings next week l The Hill READ…

70% of CEO’s will hire more employees if tax reform gets done

May 9, 2017

A broad question, but important to note that business is poised to grow in the US if tax reform gets passed. Watch the CNBC live tv video where Joshua Bolten, Business Roundtable CEO, talks about the results of a study which shows over seventy-percent of…

Border Tax planning advice for the retail sector

May 8, 2017

While the retail sector is very much against the border tax proposal, they need to plan for the possibility that it remains as part of tax reform says Greg Petro in Forbes. Since the White House plan is not revenue neutral, a border tax is…

Bernanke praises the border tax on CNBC

May 3, 2017

I think Bernanke summed it up well, the GOP has botched the sales job on the border tax. He goes on to make a pretty good case for the border tax and all the key elements such as incentivizing domestic production, the expected increase in…

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Latest News

The Impact of Proposed Border Adjustment Taxes on Key Industry Sectors

March 10, 2017

The Border Adjustment Tax (BAT) proposal is part of a GOP sponsored tax plan that would see a 20% tax on imported goods and services coming into the US. The BAT is a key revenue component of this GOP plan which would also see corporate income taxes fall from about 35% today to 20%. The BAT is intended to offset the reduction in business income taxes and provide a level playing field for domestic products in the US and international markets. The BAT has been frequently portrayed as a punitive measure, and the new administration has participated in this rhetoric by suggesting a border tax for imports from Mexico may be a good way to cover the cost of the proposed border wall. This kind of talk has fueled speculation that a border tax is intended to punish our trading partners and those that import…

What Are the Proposed Changes to the U.S. Tax Policy?

March 8, 2017

Many businesses in the Supply Chain community are concerned about the new administration and their proposed changes to the U.S. Corporate tax policy, particularly with the possibility of new taxes on imports. While the so called border taxes are getting all the press, it is but one aspect of the overall tax plans being proposed by both the GOP and the Trump administration. Let’s explore the big picture in order to better assess what actions we can take as supply chain professionals in response to these changes. AN OVERVIEW OF THE KEY TAX PLAN CHANGES There are currently two plans in play on Capitol Hill; one is the GOP Tax Plan published last summer, (http://abetterway.speaker.gov/_assets/pdf/ABetterWay-Tax-PolicyPaper.pdf) and the other is the Trump Tax Plan published during his campaign, (https://assets.donaldjtrump.com/trump-tax-reform.pdf). Both of these plans share some common characteristics that will significantly impact the business environment. Some of…

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