Duncan Hunter - New Legislation
Washington, D.C. – Today, U.S. Congressman Duncan Hunter (R-CA) was joined by several of his colleagues in introducing the Border Tax Equity Act. The legislation, which Congressman Hunter coauthored with Representatives Bill Pascrell (D-NJ), Walter Jones (R-NC) and Michael Michaud (D-ME), ends the double taxation of U.S. exports and works toward leveling the playing field for U.S. workers and manufacturers.
“Under our current trade system, U.S. exports are taxed twice: once domestically and then a second time as they arrive at their destination,” said Congressman Hunter. “Our trading partners, on the other hand, rebate taxes to their exporters, who also incur no taxes when their products reach America’s shores.
“For our workers to be competitive in today’s global market, we must level the playing field by eliminating the excessive tax burden and correcting the unfair trade practices responsible for driving American industry offshore. By prohibiting the double taxation of U.S. exports, the Border Tax Equity Act takes a much needed and long overdue step towards enacting trade laws that give our workers and manufacturers a chance to succeed.”
Specifically, the Border Tax Equity Act would:
- Direct the United States Trade Representative (USTR) to negotiate a remedy within the World Trade Organization by January 1, 2009, for the $379 billion disadvantage to American domestic producers and service providers caused by foreign border-adjusted taxes.
Should no resolution be reached by January 1, 2009, the legislation then requires:
- An offsetting assessment at the U.S. border on imports equal to the amount of the rebate provided by the exporting country;
The Border Tax Equity Act has been referred to several House committees for further consideration.
- The issuance of rebates equal to the amount of taxes paid by American exporters on goods taxed by importing nations.
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