business news in context, analysis with attitude

Bloomberg reports that General Electric, Boeing and Pfizer "are among about two dozen companies that have formed the 'American Made Coalition,' a group representing makers of domestic goods that will promote efforts to overhaul the U.S. tax code. They say the so-called border-adjusted tax would help U.S. manufacturers compete with products made overseas, giving a boost to President Donald Trump’s goal of increasing factory jobs."

The formation of the group is seen as a direct response to the decision by 120 trade groups and retailers - including Walmart - to back a campaign called "Americans for Affordable Products" that is designed to fight against any border tax.

“I respect Wal-Mart, but we’re going to have a different perspective on tax reform as Wal-Mart,” says GE CEO Jeffrey Immelt. “I think all of our voices need to be heard.”

According to the story, "Opponents of the border-adjusted tax say it would force companies to pass the increases to customers -- boosting prices for everything from food and clothing to gasoline and auto parts -- without sparking a resurgence of domestic manufacturing." Supporters of a border tax say that "the proposed tax changes would help domestic manufacturers and contribute to Trump’s goal of boosting jobs in the US."
KC's View:
I believe in encouraging American companies to actually make products in America. I'm no tax expert, nor am I an economist, but I kind of wish there were a way to create incentives to make things in the US without taxing imported products, which a reasonable number of people seem to think will help create a trade war.