The controversial border adjustment tax (BAT) is being put aside for the time being, according to a joint statement from the “Big Six.”
House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-Utah), and House Ways and Means Committee Chairman Kevin Brady (R-Texas) released a statement confirming they have decided to put it aside because of the “many unknowns associated with it.”
The 20 percent tax, which would have ended retailers’ abilities to deduct the cost of imported merchandise, was widely panned by CE retailers.
The National Retail Federation, which had been strongly against the tax, applauded the move in a statement. “Today’s update on the status of tax reform is very encouraging, particularly since the border adjustment tax is no longer under consideration,” said NRF president and CEO Matthew Shay. “By removing this costly element of reform, the way has been cleared for swift action on a middle-class tax cut that will put more money in the wallets of the American taxpayer. Changing our outdated tax code is fundamental if we are to grow our economy, encourage investment and create jobs.”