Treasury Secretary Steven Mnuchin spoke about his concern related to the controversial border adjustment tax (BAT) while testifying before the Ways and Means Committee this week. Secretary Mnuchin said the BAT may have a negative impact on consumers in addition to having the ability to move currencies. Congresswoman Judy Chu (D-CA), a member of the Ways and Means Committee, said Secretary Mnuchin used stronger language in opposing the BAT in a private meeting. “He actually said straight out that he doesn’t support it and the president doesn’t support it.”
The BAT is estimated to raise more than $1 trillion in revenue over the next ten years. If the BAT is defeated and no longer serves as the funding source for tax reform, Congressional leaders will be forced to find other targets for revenue in order to make reform revenue-neutral.