The Border Adjustment Tax (BAT) is taking on water on Capitol Hill according to sources. The proposal has sparked a K Street lobbying bonanza with forces both supporting and opposing the BAT working Capitol Hill to spin the impact of the new tax. Some are working on marketing a compromise plan informally called the Mini-BAT that may be an idea that saves Trump’s tax reform plan.
The BAT is a tax that only taxes imports and does not tax exports. Goods made overseas and sold in the United States are subject to a tax. Goods made domestically and sold overseas are likely taxed by the country that receives the goods, therefore they are not taxed. This policy, in addition to a lowering of the corporate income tax, will encourage American companies to stay home and produce goods produced by American workers in the United States.
Currently, all companies producing goods…
