Border Adjustment Tax (BAT) Update
There has been a lot of talk in the news lately that the House Republican proposal to include a “border adjustment tax” (BAT) as part of any tax reform effort is dead.
Earlier this month, House Ways & Means Committee Chairman Kevin Bray (R-TX) proposed phasing-in a border adjustment tax (BAT) over five years, instead of immediate implementation as proposed in the House Republican “A Better Way” tax reform proposal. Thankfully, Brady’s phase-in approach failed to gain new support for the proposal. However, it appears opposition to the TGA-opposed BAT proposal continues to grow.
Regrettably, key Congressional leaders continue to keep the concept of the BAT alive.
Why? Because Congressional Republicans, and the White House, want any tax reform they approve to be permanent, like the Ronald Reagan tax reform of 1986, not temporary, like the Bush tax cuts in the 1990s. In order to make tax reform permanent, Congress must find a way to pay for it.
Lowering the corporate tax rate from 35 percent to 15 or 20 percent, as both the White House and Congressional Republicans have proposed, means over a trillion dollars in lost revenue for the U.S. government over the next decade. Eliminating key exemptions, as proposed by the White House, will only recoup a portion of this lost revenue.
However, the BAT, as currently envisioned, would raise over $1.2 trillion in revenue for the U.S. government over the next ten years. That revenue is really hard to give up if you want to make 15 or 20 percent corporate tax rates the new norm, which is why BAT is not dead yet.
And that is why we need you to keep up the pressure on Congress to kill the BAT. Here are ways you can help:
- Join more than 14,000 executives, including members of TGA and other affected industries, and send a letter to your members of Congress to show your opposition to tax reform that includes a BAT (it only takes a few minutes); Get all of your colleagues to also send an email; and
- Continue to voice your opposition in meetings with Members of Congress, and share our handout showing the potential impact on our industry.
For more information, please contact Nate Herman, TGA’s Director of Government Relations, at 202-853-9351, firstname.lastname@example.org.
TGA Applauds GSP Travel Goods Decision
As of July 1, thanks to a five-year-long effort by TGA and others, President Trump proclaimed that U.S. travel goods imports from all GSP-eligible countries (see page 12), including the Philippines, Thailand, India, Pakistan, Cambodia, and Sri Lanka (but NOT China or Vietnam), are now duty-free under the U.S. Generalized System of Preferences (GSP) program. Please contact TGA’s Nate Herman at 202-853-9351 or email@example.com, if you have questions or would like additional information.
More California Proposition 65 Notices Issued
New “60-day” notices have been issued alleging that brands and retailers sold accessory bags, sports cases, and cosmetic bags in California that contained 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, firstname.lastname@example.org, 202-853-9351.
House Chairman Phase-In Proposal Fails to Gain Additional Support for BAT
Last week, House Ways & Means Committee Chairman Kevin Bray (R-TX) proposed phasing-in a border adjustment tax (BAT) over five years, instead of immediately as proposed in the House Republican “A Better Way” tax reform proposal. Brady’s phase-in approach has failed to gain new support for the proposal. Instead, it appears opposition to the TGA-opposed BAT proposal continues to grow. Regrettably, ongoing support by key Congressional leaders means the BAT is not yet dead. TGA needs you to contact your members of Congress to oppose the BAT. This link makes it easy for you and your colleagues to send emails opposing the BAT to your Representative and Senators in only a few minutes. Contact your Members of Congress today.
A One-time Gift Is Your Chance to Save
This year’s International Travel Goods Show fell a month later than our usual early March schedule – timing that prevented many long-time Show exhibitors and TGA supporters from participating in this year’s Early Bird discount program. Recognizing this, and in the spirit of fairness, TGA’s Board of Directors just voted to extend the Early Bird discount deadline for The 2018 Show to July 1. If you haven’t signed up for next year’s Show, this is your chance. This is the only exhibitor discount program available for The Show, and this is a one-time extension only. Deposits must be received by July 1, 2017. Contact Cathy Hays, email@example.com, 877-842-1938, x-707 to save now, before this special opportunity is gone.
The 30-day voting period has ended, and during that time an overwhelming number of members cast their e-votes in support of TGA’s Slate of Nominees for the 2017-2018 TGA Board of Directors. Thanks to everyone who exercised their very important privilege as a member of the Association and voted!
TGA 2017-2018 Board of Directors
Robert Dodson, Ricardo Beverly Hills, Chair
David Lomas, Design Go Ltd., Chair Elect
Jack Holodnicki, Olivet International, Vice Chair
Cliff Ensley, Leisure Merchandising Corp., Treasurer
Lloyd Rabinowitz, Samsonite, Secretary
Scott Kosmin, 24-7 International, Immediate Past Chair
Sue Flaum, Burlington Stores
Andrew Hamilton, Antler USA Ltd.
Nathan Haskell, it luggage
Jerry Kallman, Airline International Luggage
Magi Raible, LifeGear Design
TGA Urges Sides to Agree to Extension of West Coast Port Labor Contract
TGA joined 120 organizations in sending a letter applauding the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) for agreeing to early discussions on a contract extension. The letter also applauds PMA (the employers) for proposing a three-year contract extension offer, and urges ILWU members (the longshoremen) to accept the offer when they vote on the proposal later this summer. The current West Coast port labor contract expires July 1, 2019.
Get Boosted, Socially
Today’s marketing is all about customer engagement, and means cultivating an online following. If you’re on Twitter, Facebook or LinkedIn, TGA can help. Send us your company news and product stories and we’ll help boost your social media presence by broadcasting it on our social network. Contact Kate Ryan, firstname.lastname@example.org, 774-929-5223, and let TGA help elevate your social profile.
More California Proposition 65 Notices Issued
New “60-day” notices have been issued alleging that brands and retailers sold luggage, duffel bags, wallets (Notice 1, Notice 2), and passport cases in California that contained di (2-ethylhexyl) phthalate (DEHP) or Diisononyl phthalate (DINP) 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.
Show Exhibitor Discounts End June 1
The only exhibitor savings available at The International Travel Goods Show is the Early Bird discount. At just $10/square foot, that’s 56% less than the standard exhibitor rate of $23/square foot. It’s the best deal in travel goods, and it’s almost gone. Deposits and reservations have to be in by June 1 to take advantage of this special rate, so don’t delay – contact Cathy Hays, email@example.com, 877-842-1938, x-707 and put yourself in front of the world’s most influential travel goods retailers.