A group of chief executive officers have weighed in on the heated debate over the border adjustment tax proposed by House Republicans, expressing their support of the plan, The Hill reported on Tuesday.
In a letter sent by CEOs of 16 major companies to congressional leaders, they said the proposal, which would subject imports to U.S. tax and exempt exports "is consistent with the tax policies of nearly every other country in the world, and it would effectively end the 'Made in America' tax that creates an unfair advantage for foreign-based companies at the expense of U.S. jobs and economic growth."
The businesses whose CEOs sent the letter are members of the American Made Coalition, a group formed this month to back the border adjustment tax plan.
House GOP leaders say that the tax removes incentives for businesses to move jobs overseas and would also raise more than $1 trillion that could be used to offset funds lost by other tax cuts.
However, the plan is controversial even within the GOP as it drives a wedge between Trump's economic nationalism and many mainstream Republicans who support free market ideas. A number of GOP lawmakers and business groups oppose the plan, saying it would increase the price of consumer goods.
Sen. Lindsey Graham told CBS's "Face the Nation" that "Republicans in the Congress… are all tied up in knots. The House is talking about a tax plan that won't get 10 votes in the Senate."
Some GOP representatives, such as Patrick Meehan, who Bloomberg BNA reports is under pressure from oil refiners in his home state of Pennsylvania to oppose the border tax, have touted the idea of exceptions to it.
"I'm hoping that there may be an ability to consider the methods of recognizing that a commodity can only be purchased overseas, maybe a precious metal, oil that in its natural state that helps support manufacturing jobs here," Meehan said.
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