Jonathan Swan Jan 27, 2017
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Kochs vs Congress on the border adjustment tax

Phelan M. Ebenhack / AP

A group linked to billionaire brothers Charles and David Koch sent a letter to House Ways and Means chair Kevin Brady, urging Republicans to reverse their support for the border adjustment tax. Americans for Prosperity President Tim Phillips summarizes the Koch network position:

"Border adjustability is nothing more than a tax on American consumers. We are against this approach because in the end, it is making life more expensive for all Americans, especially low-and middle-income families. Instead of picking winners and losers, Congress should pursue a simple, pro-growth approach that lowers rates, eliminates loopholes, simplifies the tax code, and above all, protects consumers from new tax increases."

Why this matters: The border adjustment plan — which would cut taxes on exports but raise them substantially on imports — is central to Paul Ryan's ambitious plans for tax reform. Republicans believe it could raise more than $1 trillion in revenue, helping to pay for Trump's expensive promises like the wall and his massive infrastructure stimulus.