Retailers the country over can breathe a collective sigh of relief now that the border adjustment tax is officially, fully dead.
The pronouncement came Thursday in a joint statement on tax reform issued by House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin, and others.
“While we have debated the pro-growth benefits or border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” the statement noted.
In it’s proposed form, the border adjustment tax, or BAT, would have raised the tax on a $10 garment from $0.35 to $1.40 since cost of goods would no longer have been deductible, though the corporate tax rate would have come down from 35 percent to 20 percent.
Read more at Sourcing Journal.