House Ways and Means Committee Chair Kevin Brady (R-TX) says that a controversial provision of the Republicans’ proposed tax reform plan isn’t going anywhere, despite complaints from retailers, oil refiners and a widespread group of others who oppose it.
In a lengthy interview on C-SPAN’s “Newsmakers” program, Brady said the “border adjustments” proposal that would impose new taxes on imports while allowing exports to be sold tax-free is “going to stay.”
Brady said other countries already use border adjustments, which “gives them the price advantage over us here in America.”
“Today, we lose both here in America and we lose around the world,” he said. “That can't stand. This is a key part of our built-for-growth tax code, it's going to stay.”
Brady added that Republicans want to talk with businesses that rely heavily on imports and find solutions which address their concerns as part of “a tax plan that is built for growth across this country,” adding: “Our door is open.”
But he left no doubt about the bottom-line for Republican lawmakers as they remake the tax code. “We think it’s important though for them to understand that we cannot leave in place any tax policies that encourage our companies to move their operations overseas just to sell back in the United States — those won’t stay,” Brady said. “Industries will have to adjust.”