Sen. Jeff Flake Stands Up for Arizona’s Consumers and Businesses

Takes to the Senate Floor to Raise Concerns with Border Adjustment Tax

Phoenix, AZ – Today, Americans for Affordable Products, a coalition of nearly 200 businesses, local organizations, and trade associations united to stop the Border Adjustment Tax or BAT, and its resulting increased prices on everyday necessities, thanked Senator Jeff Flake (R-AZ) for speaking out on the U.S. Senate floor to raise his concerns with the BAT.

The Border Adjustment Tax is a provision of House Speaker Paul Ryan’s (R-WI) tax reform plan, which, if enacted, would levy a 20 percent tax on imported goods.

During the floor speech, Senator Flake expressed his worry that BAT “could make everyday consumer products more expensive at the very places that middle-class families shop the most…[and] household staples could be pushed out of reach for those who can least afford it.” He went on to say that he’s looking forward to working with his colleagues on tax reform, “but we ought to make sure that the middle class isn’t in the losing column.”

“Senator Flake’s stout defense of Arizona’s businesses and consumers earlier today cannot be lauded enough,” said John Arterburn, owner of Ace Hardware in Pinnacle Peak. “A 20 percent tax on imported products could threaten the viability of my business, forcing me to make tough choices – I’d either have to raise prices or eliminate staff.”

If enacted, the Border Adjustment Tax could result in American consumers spending an additional $1,700 per year on basic necessities like food, clothing, medicine and gasoline.

“Everyone agrees, simplifying our complicated tax code is very much needed, but shifting the burden onto the backs of the middle class while killing U.S. jobs is not the way to do it,” said Robert Medler, VP of Government Affairs for the Tucson Metro Chamber. “Senator Flake hit the nail on the head today – we need tax reform in this country, but introducing a Border Adjustment Tax which amounts to a hidden tax on consumers and punishes those that are the least fortunate dampens what would otherwise be a popular plan.”

Americans for Affordable Products is a coalition of job creators, entrepreneurs, business leaders and consumers united against higher prices on everyday necessities. To learn more, please visit: www.KeepAmericaAffordable.com.

Additional Information:

  • Resources: Coalition Infographic, Myth vs. Fact, and More
  • Press Release: AAP Launches Opposition to BAT

To schedule an interview with an Americans for Affordable Products representative, please email press@KeepAmericaAffordable.com.

Border Adjustment Tax Could Derail Tax Reform

Americans for Prosperity - Arizona

By: Tom Jenney – Americans for Prosperity, Arizona

One of the most enduring symbols of Arizona is the Grand Canyon.  In fact, many people have nicknamed us the Grand Canyon State.  This most famous of the national parks also illustrates the stakes for Arizonans in the debate that is currently being waged in Washington, D.C. over tax reform.

Let there be no mistake: the so-called Border Adjustment Tax (BAT) would blow a Grand Canyon-sized hole in our economy and the budgets of working families.

In Arizona, the retail industry is a significant source of jobs.  There are more than 64,000 retail businesses that support 828,000 jobs, contributing $53 billion to our economy every year.  If you lined up the workers who are employed because of retail in Arizona shoulder to shoulder, they would span just about the entire length of the Grand Canyon.  That’s a lot of jobs and many of them could be on the chopping block if Speaker Paul Ryan, and U.S. House Ways and Means Chairman Kevin Brady move forward with the BAT.

The BAT is a national sales tax that would raise $1 trillion in new revenue over the next ten years by taxing imports.  Small businesses, particularly retailers would be discriminated against, while big multinational corporations that ship products overseas, would have their exports exempted from federal taxes.  This is a classic example of Washington picking winners and losers among industries, but in this case, it would be middle-income working families who get the shortest end of the stick and pay the ultimate price.

The BAT would drive up the cost of everyday necessities, such as gasoline, groceries, food and clothing, including prescription medicines.  According to the National Retail Federation, the average Arizona family could end up paying more than $1,700 per year in higher prices.  This is a lot of money that struggling, working families, who have seen their wages stagnate in recent years, simply can’t afford to pay.

Fortunately, the BAT is running into a buzz saw of political opposition.  Conservative organizations such as the Club for Growth and Americans for Prosperity have blasted the BAT as being anti-consumer and anti-free market.  Senator Jeff Flake should take note of this opposition and publicly oppose it.  Moreover, Congressman David Schweikert sits on the Ways and Means Committee and should work to keep this tax increase on Arizona families from ever getting out of his committee.

Arizona’s elected leaders could do the vital retail businesses in our state and middle-class families a great service by formally announcing their opposition and driving a nail in the coffin of BAT.  Tax reform is too important to the health of the economy and the pocketbooks of working households for it to be derailed by an exotic, anti-consumer, anti-small business tax.  The BAT is simply bad policy, and it deserves to die an early death, so conservative, free market tax reform can get back on the right track.

It is time to save tax reform, which is badly needed for families and businesses alike in Arizona, by saying no to and killing the BAT.  That is the first step to fairly and equitably lowering the rates for everyone and allow the free market to work.  Conservatives were not elected to Congress to put their thumb on the scale and pick winners and losers, and that is exactly what a trillion-dollar tax increase on Arizona families does in exchange for a permanent tax holiday for multinational companies, many of which already exploit loopholes and receive special deals from lobbyists in Washington.  Senator Flake and Congressman Schweikert, voters sent you to the nation’s capital to fight for their interests and are watching who you stand up for.

Tom Jenney is the State Director of the Arizona Chapter of Americans for Prosperity.