"House Republican leaders insist skeptics, including in the Senate, will come around once they see there’s no easy alternative to border adjustment. 'There is no magical way to do real tax reform that doesn’t upset anyone,' says Brendan Buck, a spokesman for Mr. Ryan."
This is a very unfortunate and misleading remark. By suggesting that we are just "upset", they marginalize the legitimate concerns of good American companies who add a lot of value in our economy. Let's not forget that 97% of American importers are small businesses. So they characterize our fight for survival as being "upset". It also implies self-interest on our part, rather than opposing populism that will destroy jobs and value in the economy.
The problem posed by the BAT is hardly without possible solution. I have pointed out two obvious ones, namely a Reagan-style tax cut with a sunset to limit any possible loss of revenue from insufficient growth in the tax base, or spending cuts, or a combination of the two. So what's so hard? It's worth noting that Barron's Magazine published a detailed and reasonable proposal in its December 24th issue to cut $8.6 Trillion from the Federal budget over ten years. The BAT is supposed to raise $1.2 Trillion. So one-seventh of the Barron's cuts would cover the cost.
Rep. Kevin Brady is a big cheerleader for the BAT as Ryan's designee and Chair of Ways and Means. He has said publicly on numerous occasions that he will go forward with this provision at all costs. Thusfar, despite lots of bad press and organized opposition that will endanger his Republican majority in the House, he has refused to relent.
Notably, Brady's own district is full of importers. Brady's district, Texas's 8th District, is a so-called "safe seat", so apparently his constituents like what he's doing. Do they know that he will screw thousand of importers in his district? I wonder.
According to my research in a public database, there have been 24,402 import entries associated with zip codes either wholly or partially within Brady's district over 2015-16. The total importer count is 2430 in this two-year period, including many individuals (let's call them "voters"). They will all have to pay up in Brady's BAT because they are on the "loser" list. Remember, winners and losers. . . .
Do people like Brady need to care about what happens to their own constituents? Are they represented to protect the interests of local companies, or to be indifferent to the fate of their constituents when Paul Ryan offers a plum job like the Chairmanship of Ways and Means? Again, I wonder. Consider the range of industries on this list of importers:
- Oil Service
- Oil
- Metals
- Chemicals
- Tires
- Food
- Coffee
- Fasteners
- Machinery
- Building Materials
- Polymers/Plastics
- Safety
- Fibers
- Vehicles
- Auto Parts
- Candy
- Electronics
- Gases
- Sports equipment
- Healthcare
- Materials
- Wire
- Stone
- Filtration
- Rubber
- Ink
- Home furnishings
- Alcoholic beverages
- Solar equipment
- Computer equipment and technology
So here is a list of 160 top importers in the Eighth District of Texas, Kevin Brady's own district (in alpha order). I do not know how the BAT math will affect them, but they are on record as big importers (at least 20 import entries) and will pay up for those. Will they suffer as badly as our company (165% tax bill)? I don't know but there's reason to believe many will suffer considerably.
1 | ACCELERATED PRODUCTION SERVICES INC | SPRING | TEXAS |
2 | ACCENT BUILDING MATERIALS | SPRING | TEXAS |
3 | ACE COMPLETION ENHANCEMENT SERVICES | SPRING | TEXAS |
4 | ALLIED ENGINEERING MACHINE | HOCKLEY | TEXAS |
5 | AMERESCO SOLAR | HOUSTON | TEXAS |
6 | AMERESCO SOLAR SOLUTIONS INC | WALLER | TEXAS |
7 | AMERICAS STYRENICS LLC | SPRING | TEXAS |
8 | ANGELINA AMERICAN INC | SPRING | TEXAS |
9 | ANI MATE LTD | SPRING | TEXAS |
10 | APEX CHEMICALS INC | SPRING | TEXAS |
11 | ATKINSON CANDY COMPANY | SPRING | TEXAS |
12 | AVON GRIPS | SPRING | TEXAS |
13 | AVON PERFORMANE GRIPS | SPRING | TEXAS |
14 | BAKER HUGHES | SPRING | TEXAS |
15 | BAUER MANUFACTURING INC | SPRING | TEXAS |
16 | BAUER PILECO INC | SPRING | TEXAS |
17 | BECH CHEM LLC | MAGNOLIA | TEXAS |
18 | BEZARES USA LTD | SPRING | TEXAS |
19 | BRILLIANT RESOURCE CORP | SPRING | TEXAS |
20 | CAMERON PLANT | SPRING | TEXAS |
21 | CANRIG DRILLING TECHLTD | SPRING | TEXAS |
22 | CB & I INC | SPRING | TEXAS |
23 | CBI AMERICAS LTD | KINGWOOD | TEXAS |
24 | CERAMIC SOLUTION | CONROE | TEXAS |
25 | CHEMJECT INTERNATIONAL INC | KINGWOOD | TEXAS |
26 | COMBILIFT DEPOT | SPRING | TEXAS |
27 | COMMAND DRILLING PRODUCTS USA LT | CONROE | TEXAS |
28 | CONCEPTUM LOGISTICS USA LLC | MONTGOMERY | TEXAS |
29 | CONCORDIA CHEMICAL LLC | SPRING | TEXAS |
30 | CONROE PLANT HUNTSMAN | MADISONVILLE | TEXAS |
31 | CONTINENTAL ALLOYS AND SERVICES | TOMBALL | TEXAS |
32 | COPAN TRADE LTD CO | HOUSTON | TEXAS |
33 | CORDIALSA USA INC | TOMBALL | TEXAS |
34 | CRANE CO INC | LUFKIN | TEXAS |
35 | CRYSTAPHASE PRODUCTS INC | SPRING | TEXAS |
36 | CT SOUNDS | HOUSTON | TEXAS |
37 | DANIEL INTERNATIONAL STEEL INC | SPRING | TEXAS |
38 | DELECTATIO WINES | HOUSTON | TEXAS |
39 | DELTACOMPOSITES LLC | HOUSTON | TEXAS |
40 | DETCON INC | NEW CANEY | TEXAS |
41 | DEUGRO OCEAN TRANSPORT | SPRING | TEXAS |
42 | DEUGRO USA INC | SPRING | TEXAS |
43 | DIAMOND LNG LLC | SPRING | TEXAS |
44 | DORSTENER WIRE TECH | SPRING | TEXAS |
45 | ECMMS SA DE CV | TOMBALL | TEXAS |
46 | ELASTOTECH SOUTHWEST INC | WILLIS | TEXAS |
47 | EMERSON PROCESS MANAGEMENT BET | WALLER | TEXAS |
48 | ENERGY ALLOYS LLC | SPRING | TEXAS |
49 | ERGOGENESIS LLC | TOMBALL | TEXAS |
50 | ERNE FITTINGS INC | WILLIS | TEXAS |
51 | EXXONMOBIL OIL CORPORATION | WILLIS | TEXAS |
52 | FABRITEX OPERATING COMPANY LLC | SPRING | TEXAS |
53 | FILMOP USA LLC | TOMBALL | TEXAS |
54 | FOXCONN ASSEMBLY LLC | SPRING | TEXAS |
55 | FOXCONNEL EXPEDITORS INTERNATIONAL | SPRING | TEXAS |
56 | FRED EDWARD INC | CONROE | TEXAS |
57 | GLOBAL HOLDINGS INC | SPRING | TEXAS |
58 | GOODMAN MANUFACTURING CO LP | SPRING | TEXAS |
59 | GOODMAN MANUFACTURING COMPANY LP | WILLIS | TEXAS |
60 | GREG MAJORS AUCTIONS | PINEHURST | TEXAS |
61 | HAYCARB USA INC | TOMBALL | TEXAS |
62 | HAYMARK INC | HOUSTON | TEXAS |
63 | HC4 CRANE PROCESS FLOW TECH | SPRING | TEXAS |
64 | HEAT TRANSFER TUBULAR PRODUCTS LLC | CONROE | TEXAS |
65 | HEAVY DUTY BUS PARTS INC | SPRING | TEXAS |
66 | HEMPEL COATINGS USA INC | HOUSTON | TEXAS |
67 | HMT LLC | NEW CANEY | TEXAS |
68 | HON HAI PRECISION INDUSTRY | WALLER | TEXAS |
69 | HOOPS INC | SPRING | TEXAS |
70 | HORIZON POLYMERS LLC | CONROE | TEXAS |
71 | HSV AUTOMOTIVE | HOUSTON | TEXAS |
72 | HSV AUTOMOTIVE INC | SPRING | TEXAS |
73 | HUGHES CHRISTENSEN | CONROE | TEXAS |
74 | HUNTSMAN INC | SPRING | TEXAS |
75 | HUNTSMAN P&A AMERICAS LLC | TOMBALL | TEXAS |
76 | HUNTSMAN PETRO CHEMICAL | SPRING | TEXAS |
77 | HYVAIR CORORATION | SPRING | TEXAS |
78 | IMPEX INTERNATIONAL GROUP | HOUSTON | TEXAS |
79 | INDEPENDENCE OILFIELD CHEMICALS LLC | PORTER | TEXAS |
80 | INKJET INC | NAVASOTA | TEXAS |
81 | INNOSPEC LLC | CONROE | TEXAS |
82 | INTERAMERICAN COFFEE INC | HOUSTON | TEXAS |
83 | IPP HOUSTON | HOUSTON | TEXAS |
84 | JADE COMPANY CO | SPRING | TEXAS |
85 | JH FASTENER INC | CONROE | TEXAS |
86 | KONGSBERG AUTOMOTIVE | SPRING | TEXAS |
87 | KONGSBERG AUTOMOTIVE MAQUI LOGISTICS | CONROE | TEXAS |
88 | KONGSBERG AUTOMOTIVE WILLIS INTL | CONROE | TEXAS |
89 | KONGSBERG POWER SYSTEMS V | CROCKETT | TEXAS |
90 | KP WELLHEAD SUPPLY LLC | SPRING | TEXAS |
91 | LAMIFLEX INC | CONROE | TEXAS |
92 | LANGLEY ALLOYS INC | SPRING | TEXAS |
93 | LONE STAR FASTENERS LP | SPRING | TEXAS |
94 | LYRBA USA LLC | KINGWOOD | TEXAS |
95 | MARTUS STONE | KINGWOOD | TEXAS |
96 | MCA SYSTEMS | HOUSTON | TEXAS |
97 | MCT BRATTBERG INC | SPRING | TEXAS |
98 | MEDIVATORS | CONROE | TEXAS |
99 | METRIE INC DALLAS DISTRIBUTION | SPRING | TEXAS |
100 | MEXICOCANTERA LLC | CONROE | TEXAS |
101 | NATIONAL OILWELL LLC | SPRING | TEXAS |
102 | NELOK INC | CONROE | TEXAS |
103 | NEP OF HOUSTON INC | MONTGOMERY | TEXAS |
104 | NETWORK INTERNATIONAL LLC | SPRING | TEXAS |
105 | NOBLE ENERGY INC | CONROE | TEXAS |
106 | NOV BRANDT | CONROE | TEXAS |
107 | NOV DH CONROE MANUFACTURING | HOUSTON | TEXAS |
108 | NOWACO US INC | SPRING | TEXAS |
109 | OEM REPLICAS | CONROE | TEXAS |
110 | OLEON AMERICAS INC | LUFKIN | TEXAS |
111 | OXBOW CALCINING LLC | CONROE | TEXAS |
112 | P CHEM | WILLIS | TEXAS |
113 | PACKING FLUIDS CONTROLS | CONROE | TEXAS |
114 | PATTON MYHRE SOURCING & SUPPLY | HOCKLEY | TEXAS |
115 | PENTAIR FILTRATION SOLNS LLC | PINEHURST | TEXAS |
116 | PENTAIR WATER FILTRATION | TOMBALL | TEXAS |
117 | PETROLEUM PROD & SERVICES | SPRING | TEXAS |
118 | PETROLEUM WHOLESALE L P | MAGNOLIA | TEXAS |
119 | PIPECO SERVICES | CONROE | TEXAS |
120 | PRAXAIR INC | SPRING | TEXAS |
121 | PRESIDENTIAL BILLIARDS LP | WALLER | TEXAS |
122 | QTRCO INC | TOMBALL | TEXAS |
123 | REACHMASTER INC | CONROE | TEXAS |
124 | REALTURF USA LLC | CONROE | TEXAS |
125 | REBUBLIC NATIONAL DISTRIBUTING | MAGNOLIA | TEXAS |
126 | RIGAKU AMERICAS CORPORATION | HOUSTON | TEXAS |
127 | RIVIERA FORWARING CO | HOUSTON | TEXAS |
128 | ROWE EQUIPMENT INC | SPRING | TEXAS |
129 | S A F E CHEMICALS LLC | CONROE | TEXAS |
130 | SCANDIC FOOD INC | CONROE | TEXAS |
131 | SEVES USA | SPRING | TEXAS |
132 | SHRIEVE CHEMICAL PRODUCTS | KINGWOOD | TEXAS |
133 | SPECIALTY STEEL SUPPLY INC | SPRING | TEXAS |
134 | STAINLESS STRUCTURALS LLC | SPRING | TEXAS |
135 | STAINLESS STRUCTURALS WORKS, LLC | TOMBALL | TEXAS |
136 | STERICYCLE INC | SPRING | TEXAS |
137 | STOOSS USA INC | CONROE | TEXAS |
138 | STS PRODUCTS INC | SPRING | TEXAS |
139 | SUMMIT PETROCHEMICAL TRADING | WALLER | TEXAS |
140 | SUTONG CHINA TIRE RESOURCES INC | HOCKLEY | TEXAS |
141 | TAYLOR HEALTHCARE PRODUCTS INC | PORTER | TEXAS |
142 | TEXAS PRIDE TRAILERS | WILLIS | TEXAS |
143 | TFL USA CANADA INC | ELKHART | TEXAS |
144 | THRUBORE VALVES LLC | SPRING | TEXAS |
145 | TIOXIDE AMERICAS INC | MAGNOLIA | TEXAS |
146 | TRANSLIQUID TECHNOLOGIES LLC | TOMBALL | TEXAS |
147 | TRENDSETTER ENGINEERING INC | CONROE | TEXAS |
148 | TRINITY HEADS INC | SPRING | TEXAS |
149 | TRISTAR PROTECTOR SERVICE COMPANY | SPRING | TEXAS |
150 | TROPICAL GROWERS DIRECT | SPRING | TEXAS |
151 | U S RUBBER CORP | CONROE | TEXAS |
152 | UNIVERSAL AFRICA LINES CO | NAVASOTA | TEXAS |
153 | VA INTERTRADING AG | SPRING | TEXAS |
154 | VALAGRO USA INC | NEW CANEY | TEXAS |
155 | VANGUARD PHARMACEUTICAL MACHINERY | TOMBALL | TEXAS |
156 | VP GRANITE | WILLIS | TEXAS |
157 | WINDOW COVERINGS INC | CONROE | TEXAS |
158 | XTREME LASHES LLC | HOUSTON | TEXAS |
159 | YOUR GREEN 2 GO INC | HOUSTON | TEXAS |
160 | ZMC USA LLC | KINGWOOD | TEXAS |
Can you identify major exporting companies in his district that might be exerting political leverage for the tax-exemption in border adjustment?
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