Business Groups Caution Against Border Adjustment Tax

We, the undersigned associations, representing small and large businesses, tens of millions of U.S. workers, and hundreds of millions of consumers, are writing to express our strong interest in consideration of comprehensive tax reform that will increase investment in the United States, raise real wages, and increase consumer spending.

However, we do have concerns with the "border adjustability tax" provision included in the House tax reform blueprint. Companies that rely on global supply chains would face huge business challenges caused by increased taxes and increased cost of goods, which would in turn likely result in reductions in employment, reduced capital investments and higher prices for consumers.

We stand ready to work with Congress and the Administration on a pro-growth comprehensive tax reform that can work for all segments of the American economy. We believe the Better Way Tax Reform proposal, without the border adjustment provision, can provide the basis for the strong economic growth we all seek without harming our businesses and burdening our consumers with higher prices.

Sincerely,