“We are grateful that we now have the opportunity to work with Congress and the administration to reform the outmoded tax code that is a burden to all of us,” said Bill Hanvey, president and CEO of the Auto Care Association.
A 15 percent border tax would cost U.S. automakers and suppliers $22 billion a year, net; from leaving NAFTA, a 20 percent tariff on Mexican imports would drive up production costs per vehicle by $650 on average, according to BCG analysis.
The Motor & Equipment Manufacturers Association, which represents 1,000 member companies, says it supports tax reform initiatives that will increase American manufacturing employment without putting an integrated supply chain and jobs at risk.
Border Adjustment Tax To Cost Car Owners $160 More Per Year For Auto Repairs And Maintenance, Association Says
The total cost of BAT on American families is approaching $2,000 per year, the association estimates.
The association, on behalf of its 1,000 motor vehicle component manufacturer members, issued a statement supporting tax reform initiatives that it says will increase American manufacturing employment without putting an integrated supply chain at risk. MEMA also has engaged a leading research firm to investigate potential effects of the proposed Border Adjustment Tax, and to identify specific initiatives that will lead to a more competitive manufacturing environment and continued job growth in the U.S.
AMN Executive Interview: Multi Parts’ Brian Cohn Talks About The Real-World Impacts Of The Border Adjustment Tax
Opponents of the proposed Border Adjustment Tax (BAT) say the measure would place a discriminatory tax on imports that will result in their consumers paying higher prices for everyday items such as food, gas, auto repair, clothing and medicine. Today, Brian Cohn, president of Multi Parts in Jupiter, Florida, shares his take on this hot-button issue.