Arizona congressman happy to see border tax left out of Trump’s tax plan
PHOENIX — An Arizona congressman said Thursday he was glad to see President Donald Trump’s proposed tax plan does not include a border adjustment tax.
“I think that’s good news because that’s not going to be helpful for the country,” U.S. Rep. Andy Biggs (R-Ariz.) told KTAR News 92.3 FM’s Arizona’s Morning News.
A border adjustment tax — the one floated by the Republican Party would be somewhere around 20 percent — is essentially a consumption tax on imported goods.
“Think of it this way: Let’s say you’re a restaurateur and you have an Italian restaurant, and you’re importing your cheeses, your tomatoes, your pasta from Italy. Guess what? They basically went up 20 percent if you have a border adjustable tax,” Biggs said.
The tax would affect everything from vegetables to cars to clothing. Biggs said that would be an issue considering the way things are produced.
“Nothing, virtually, is made solely in the U.S. anymore,” he said, adding that the average household may pay as much as $2,000 more per year for goods should the measure be put in place.
Biggs said he was a fan of Trump’s plan though it will undoubtedly get some tweaks in Congress.
“I think you’re going to see some different adjustments with the rates on the individual side,” he said. “You want to make sure the middle class gets a great break.”
The congressman also said, unlike the attempt to replace the Affordable Care Act that was marred by in-party fighting, he is optimistic tax reform will be a reality under Trump.
“Everybody wants this tax reform and they are in general agreement in the principles – the flattening of the brackets, the reduction of taxes, stimulation of the economy through the tax policy – I’m real hopeful.
“I’m a real believer we’re going to get that done.”
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