More California Proposition 65 Notices Issued
Since the beginning of 2017, new “60-day” notices have been issued alleging that brands and retailers sold Backpacks, Running Packs, Toiletry Bags, Vinyl/PVC Cases, Phone Handbags, and Messenger Bags in California that contained Diisononyl phthalate (DINP) and di (2-ethylhexyl) phthalate (DEHP) in violation of a California law known as Proposition 65 (Prop 65). The notices serve as intent to bring lawsuits against the recipients that sold these products. For more information on Prop 65, please go to the Prop 65 page on the TGA website or contact TGA’s Nate Herman, 202-853-9351.
Call to Action! Oppose the Border Adjustability Tax (BAT)
The fight over the House Republican proposal to impose a new border adjustability tax (BAT) as part of larger corporate tax reform has heated up over the last week. The new TGA-supported Americans for Affordable Products Coalition has hit the ground running, informing American consumers, the Trump administration, and Congress on the negative impact of the proposed BAT. We need you to join the thousands of people who have already contacted their members of Congress in opposition to the BAT. We need you – and all of your colleagues – to send as many emails as possible to convince Congress that this is a bad idea. To contact your members of Congress, click here. It only takes a few minutes.
TGA Announces Opposition to Border Adjustment Tax Even as Trump and House Republicans Continue to Push It
House Republicans continue to push the Border Adjustment Tax (BAT) as part of their “A Better Way” corporate tax reform proposal. Recently, President Trump has made cryptic signals of support, although Trump’s Press Secretary has conflated the BAT with a border tariff describing Trump’s support. Under the House Republican proposal, corporate tax rates would drop from 37.5% to 20%. However, to help cover the loss in revenue, the House proposal would also impose a Border Adjustment Tax. Under BAT (BAT explained – Example 1, Example 2), imported materials and products would no longer be allowed to be deducted as part of a company’s Cost of Goods Sold (COGS). As a result, with 99% of travel goods sold in the U.S. being imported, a travel goods company’s tax base would increase dramatically under the proposal, even as the tax rate they pay on that base declines. For many companies, that means the resulting tax bill would be 3-4 times their current tax bill, in many cases, more than their profit (estimate your new tax here). As a result, TGA has joined large swaths of the U.S. business community in the new Border Adjustment Tax (BAT) Coalition to strongly oppose the BAT proposal. Congress is expected to consider corporate tax reform later this year. We need you to speak up. Click here to tell your members of Congress to oppose the BAT proposal.
TPP is Officially Dead
On January 30, the Office of the U.S. Trade Representative (USTR) officially withdrew from the Trans-Pacific Partnership (TPP) Free Trade Agreement, a proposed FTA between the U.S. and 11 other countries, including Vietnam and Japan. The formal withdrawal came after President Trump fulfilled his campaign promise to withdraw from the TPP during his first full day in office. If TPP had been implemented, travel goods from Vietnam and all other TPP countries would have been able to enter the U.S. duty-free under very flexible rules of origin. In its stead, key Trump officials have proposed beginning aggressive negotiations towards bilateral FTAs with certain countries. Please note that TPP took over five years to negotiate.