Border Adjustment Tax (BAT)

Border Adjustment Tax (BAT)

A border adjustment tax is a new consumer tax on all goods or services, including autos and auto parts, coming across our border into the United States from all nations, even those with which we have existing trade agreements. Auto parts would be subject to a BAT, so even the most American-made vehicle sold in the U.S. today would be subject to a significant price increase. 

Our Work on the Border Adjustment Tax

Background

  • A BAT is a new consumer tax on all goods or services, including autos and auto parts, coming across our border into the United States from all nations, even those with which we have existing trade agreements.
  • While no hearings have been held and no official legislative language has been released, the tax likely sits at 20 percent and is crucial to the whole proposal, paying for many of its corporate tax cuts.
  • Auto parts would be subject to a BAT, so even the most American-made vehicle sold in the U.S. today – the Toyota Camry – would be subject to a significant price increase.
  • A recent study by the Center for Automotive Research (CAR) estimates that U.S. light vehicle sales would immediately adjust 5.6 percent in immediate response to the BAT and would result in an average price increase of $2,000 per vehicle. This represents a $34.6 billion higher cost to U.S. consumers. 
  • Rising prices will drive away regular Americans looking for a new car and, as a result, vehicle demand will drop. Both American auto manufacturing plants and retailers like you will feel the pain, and be forced to shed jobs.
  • A new consumer tax would be devastating to dealers and your customers who look to you for affordable, safe means of transportation.

Take Action

Resources

BAT in the News

Border Adjustment Tax Coalitions

AIADA's Cody Lusk on the BAT

 

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