Financial Services Marketers Worried About Border Adjustment Tax Plan
Financial sector leaders are uncertain about how the House GOP’s proposed border adjustment provision, which would tax imports and exempt exports, will affect their industry, according to interviews with industry participants.
The tax proposal, which House Republicans say is necessary to pay for broader cuts in the corporate rate, has both rattled retailers and prompted other industry leaders to come to its defense. It has also created intra-party divisions, with Sen. David Perdue (R-Ga.) criticizing it as “regressive” and a bane to consumers in a letter to colleagues Wednesday.
Financial industry executives don’t know to what extent financial services will be considered a taxable commodity. “We’re still trying to get around border adjustability, and does that apply to services, not just goods?” said Richard Hunt, president and chief executive of the Consumer Bankers Association, in an interview Tuesday.