The House Ways and Means Committee recently held its second hearing on the proposed border adjustability tax. Pat Wolff, AFBF’s tax specialist, explained in Newsline how the tax would change the way the U.S. taxes corporations.
“Instead of taxing a corporation where it produces the product, the tax would be levied where the corporation sells the product,” Wolff said. “This means that a tractor manufactured in the U.S. but sold overseas would have a 20-percent tax break.” The flipside would be a 20-percent tax imposed on imports such as fertilizers.
Farmers and ranchers need to understand that this is a serious proposal, and they should speak to their representatives and senators about their industry, said Wolff. “They need to take a look at how much of their product goes overseas, and compare the benefit to exported sales with the additional costs on their inputs,” she added. Farm Bureau has not taken a position on the proposal.