On May 24th the House Ways and Means Committee held a public hearing regarding the pros and cons of a Border Adjustment Tax (BAT) as part of corporate tax reform, focusing on the impacts it could have on the economy, U.S. companies, and U.S. consumers.
While the committee’s Republican leadership still seems inclined towards including a BAT, interestingly the majority of the Rank and File members (on both sides of the aisle) seemed to have major concerns about such an approach. These concerns were not adequately appeased by the pro-BAT panelists, and our allies on the panel confirmed that these concerns were legitimate. This followed comments by Treasury Secretary Steven Mnuchin earlier in the day, questioning the validity of a BAT, saying it would create an “uneven playing field.”
For more information of the BAT, please contact the Gemini team.