2007

Washington June 07, 2007 - At a news conference today, Third District Representative Walter B. Jones (R-NC) joined Representatives Bill Pascrell (NJ), Duncan Hunter (CA) and Mike Michaud (ME) to introduce H. R. 2600, the Border Tax Equity Act. The bill aims to ensure that foreign goods entering the U.S. are subjected to the same degree of taxation imposed on U.S. goods entering other countries.


The Border Tax Equity Act would negate the estimated $379 billion disadvantage to U.S. producers and service providers caused by foreign border-adjusted taxes, including value-added (VAT) taxes, by directing the United States Trade Representative to negotiate a remedy for the VAT inequity on goods and services within the World Trade Organization by January 1, 2009.


“I strongly support fair trade, but it needs to be on a level playing field. Differential treatment of direct and indirect taxes under international trade rules puts U.S. producers at a profound disadvantage,” Jones said. “Because the U.S. relies primarily on direct taxes rather than indirect taxes – like a VAT tax – U.S. exports are taxed twice, while exports of countries that use VAT taxes are traded free of certain taxes. Since the U.S. levies no similar taxes at the border on imports, foreign VAT taxes tilt the playing field against U.S. producers.”


“The result of this tilted playing field has been a record U.S. trade deficit of $836 billion in 2006, and in the past six years, the loss of 3.2 million manufacturing jobs across the U.S. and 200,000 in my state of North Carolina alone,” Jones said. “Our trade negotiators need to begin serving the best interest of this country by demanding a level playing field.”


“It is time for our nation’s trade policies to begin reflecting the interests of American workers and manufacturers,” said Congressman Duncan Hunter (R-CA). “This legislation, which ends the double taxation of American exports, takes a much needed step towards achieving a trading system that is fair and gives our workers and manufacturers a chance to succeed.”


Additional speakers at today’s news conference included representatives from U.S. industry groups and labor, including: Kevin Kearns, President of the U.S. Business and Industry Council (USBIC); Thea Lee, Policy Director, AFL-CIO; and George Shuster, CEO of Cranston Print Works of Cranston, RI and Co-Chair of the American Manufacturing Trade Action Coalition (AMTAC).