TPA Agrees With Steve Forbes: Congress Should Look at Spending Cuts Instead of Border Adjustment for Tax Reform
January 26, 2017
The Taxpayers Protection Alliance (TPA) today published an open letter to congressional Republicans authored by visionary conservative and publishing icon Steve Forbes.
The letter, which appeared in today’s edition of The Wall Street Journal, warns Republicans in Congress that their majority could be at stake if they continue to pursue a border adjustment tax to pay for corporate tax reform. Mr. Forbes argues that border adjustment is “a costly new national sales tax on imports, one that will dramatically raise prices of everyday goods and services,” and continues by saying “Congress would be wise to focus their attention on spending cuts.”
David Williams, TPA’s President and a leader in the taxpayer movement for more than 24 years, said, “As Republican leaders wake up this morning in Philadelphia, they’ll see a message sent by the hardworking Americans who secured their majority last November. The message is clear: a border adjustment tax that raises prices on everyday items is a non-starter.”
In the letter, Mr. Forbes says that Congress should instead pass President Donald Trump’s plan, arguing that it is “a bold and effective tax reform plan that reduces individual and corporate tax rates without a massive new tax on consumers. He’s right, cut the rates and cut the spending! It’s simple and it will have a multiplier effect on job creation and economic growth.”
In concluding, Mr. Forbes says that a border adjustment tax “is bad economic policy, but it is even worse politics,” and urges Republican congressional leaders to abandon the idea.
TPA’s David Williams concurred, saying “comprehensive tax reform will provide relief and opportunity for millions of American families and job creators, but not if Congress saddles consumers and working families with a new national sales tax they don’t want and can’t afford”, said Williams. “Spending cuts, not new tax increases, are the solution to achieving the first meaningful overhaul of our tax code in more than 30 years.”