[Editor's note: 1031Gateway supports the efforts of groups like www.SaveThe1031.org, which is exposing the devastation this tax reform proposal would unleash on our economy and mobilizing Americans to make their opposition known to Congress in order to stop this bill. Please visit www.SaveThe1031.org and fill out their form to directly send individual letters to your representative and senators in Congress, urging them to fight for the 1031 exchange.]
"Pro-growth, comprehensive tax reform is badly needed, but one major sticking point facing mounting opposition in the Senate is the Border Adjustment Tax (BAT), which is included in a tax reform proposal from House leaders.
Under the BAT, there would be a 20% tax on everything imported into the U.S. This means that consumers would end up paying $1.2 trillion in the form of higher costs for clothes, gasoline, electronics, and other everyday goods.
That is why Senators Lisa Murkowski (R-AK) and Jeff Flake (R-AZ) delivered stark warnings to the GOP on the idea of a new middle class tax hike.
“We ought to make sure that the middle class isn’t in the losing column,” Sen. Flake told his Senate colleagues.
Republican leaders insist that shifting the burden of lower rates to consumers is the only way to get pro-growth tax reform done. But this isn’t true. The trillions of dollars in potential spending cuts, tax loopholes, and corporate welfare — like those identified by Americans for Prosperity — should be considered as alternatives before any new tax hike on consumers.
The more that lawmakers learn about a new tax hike on the middle class, the less reason they have to like it."
According to CNBC's March Fed Survey "Sixty percent oppose the border adjustment tax proposed by House Republicans, up from 45 percent in the prior survey. "