To: Interested Parties
From: Americans for Affordable Products
Date: April 11, 2017
RE: April Recess Memo
Barron’s recently noted the Border Adjustment Tax “would bring uncertainty and disruption to the U.S.
economy.” That reality is beginning to set in for Members of Congress as they pivot their attention to
comprehensive tax reform in earnest. Returning home for the April recess, Members will encounter
constituents eager to see Washington fix the broken tax code, but deeply opposed to paying more for the
things they need so some profitable corporations can operate tax free.
The reality is setting in for many that the controversial Border Adjustment Tax is a “poison pill” to
enacting the pro-growth, comprehensive tax reform that President Donald Trump is calling for, and
American consumers and job creators badly need. Opposition to the Border Adjustment Tax is
widespread among Senate and House lawmakers, and more importantly among voters.
Survey research commissioned by the Americans for Affordable Products confirms that voters are
growing more opposed as they learn more about the issue.
The Border Adjustment Tax Is Remarkably Unpopular Proposal With Voters
The Tarrance Group fielded a nationwide survey among N=800 likely voters from April 2-5, 2017. This survey
examined a variety of issues, including tax reform with a specific focus on the Border Adjustment Tax. On the
Border Adjustment Tax, this poll found that it is a remarkably unpopular proposal.
A strong majority (63 percent) of voters oppose the Border Adjustment Tax, including 46 percent of
voters who strongly oppose it. There is majority opposition to this proposal among voters in states with
competitive U.S. Senate races (66 percent) and among voters in states that were competitive in the 2016
Presidential election (62 percent), as well as among key voting blocs like women (70 percent) and seniors (63
percent).
Voters are more likely to oppose the Border Adjustment Tax when they learn about the potential economic
impact it could have on them. Voters are more likely to oppose the Border Adjustment Tax when they learn
they would pay more for food, clothing, gasoline, medicine and prescription drugs, and are opposed to paying
more in monthly car payments. Additionally, they are more likely to oppose the Border Adjustment Tax when
learning of the increases in unemployment generally and job losses in retail jobs specifically. And a strong
majority of voters are more likely to oppose the Border Adjustment Tax when they learn it could result in
profitable, multi-national companies paying less in taxes.
Overall, a majority (53 percent) of voters disagree with the central premise of Border Adjustment Tax
proponents: they are not willing to pay more for essential goods in exchange for helping to create jobs in
America.
Finally, a majority (56 percent) of voters say they would be less likely to vote for their Member of Congress if
they voted in favor of the Border Adjustment Tax.
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Lack of Momentum and Support
This data makes clear why in the last two weeks alone, a number of Republicans have expressed their
concerns and outright opposition to the proposal:
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Senators Rob Portman (R-OH): “Let’s go
for a more traditional approach [than
Border Adjustment Tax] at this point and
see if we can build consensus around
that.” (CNBC, 3/29/17)
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Senator Ron Johnson (R-WI): “I don’t
think the Border Adjustment Tax has a
chance of passage.” (Mic, 3/28/17)
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Senator Chuck Grassley (R-IA): “You
aren’t going to hear anything about
border adjustment in the Senate Finance
Committee.” (Bloomberg BNA, 4/4/17)
Senator Luther Strange (R-AL): “Right
now, knowing what I do about it, I would
not [vote for the Border Adjustment
Tax].” (FOX Business, 3/30/17)
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Representative Chris Collins (R-NY):
“We’re not united yet [on the Border
Adjustment Tax], there’s no question
about it.” (FOX Business, 3/30/17)
Representative Ron DeSantis (R-FL):
“But I think when you do the border
adjustment, it creates problems because
it’s effectively going to raise taxes on lowand middle-income folks in terms of the
things that they buy, and I don’t know
that that’s a winner for us economically.”
(FOX Business, 4/4/17)
Representative Roger Williams (R-TX):
“Instead of the Border Adjustment Tax,
Williams argues that conservatives need
to get serious about cutting expenses to
make a tax reform effort deficit-neutral.”
(McClatchy, 4/3/17)
Representative Mike Kelly (R-PA): “No,
I’m not [in favor of the Border Adjustment
Tax].” (FOX Business, 3/27/17)
Representative Greg Walden (R-OR):
“[H]as misgivings about Ryan's tax plan,
largely because of the Border Adjustment
Tax.” (The Oregonian, 4/5/17)
Desperation by the American Made Coalition
The “American Made Tax Dodging Coalition” has enthusiastically embraced the Border Adjustment Tax.
Their members have a history of exploiting American tax loopholes to avoid paying taxes, while
hardworking Americans pay more. If the Border Adjustment Tax becomes law, members of their coalition
will essentially pay nothing in taxes.
We anticipate the American Made Coalition will double down in their support and seek to spend millions
of dollars on misleading advertising in an effort to secure a sweetheart deal for their members.
Our Mission Over The April Recess
We will take the political and economic realities of the Border Adjustment Tax directly to voters across
the country over the April recess and ensure they are educated on the negative impact the Border
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Adjustment Tax would have on their pocketbook. Our coalition is organizing roundtables, events,
scheduling meetings, speaking to local press outlets and talking to local decision makers about why we
support tax reform without the Border Adjustment Tax. We will run multi-faceted campaigns in key
states across the country and spread our message across digital and social media platforms.
The Hard Truth
Opposition to the Border Adjustment Tax is growing because of simple economics and unfavorable
political realities. American families would be saddled with increased costs for everyday essentials such
as food, clothing, medicine and gasoline to the tune of $1,700 per year. Furthermore, over 42 million
American jobs would be threatened under the Border Adjustment Tax. Instead of cutting wasteful
spending, Congress would be imposing a trillion-dollar tax on consumers while large, multi-national
companies pay virtually nothing.
The reality is that the Border Adjustment Tax is an economic and political loser that Members of
Congress should oppose. If not, voters will hold them to account at the ballot box in 2018.
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