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Border Tax Equity Act

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Mr. Swanner, with thanks to Mr. Pascrell, submits

A BILL

To impose a tax on imports from foreign countries with an indirect tax system while offering a rebate on exports to those same countries.

SECTION 1. SHORT TITLE.

(a) This act shall be cited as the Border Tax Equity Act.

SEC. 2. IMPOSITION OF TAX.

(a) General Rule.—There is hereby imposed a tax on imports of goods and services from any foreign country that employs an indirect tax system and grants rebates of indirect taxes paid on goods or services exported from that country.

(b) Amount Of Tax.—The amount of the tax imposed by subsection (a) on an imported good or service shall be an amount equal to the excess of—

(1) the indirect taxes that are rebated or not paid on the good or service upon its export, over

(2) any indirect taxes imposed on the good or service at the border of the United States.

(c) Liability And Time Of Imposition Of Tax.—

(1) LIABILITY.—The tax imposed by subsection (a) on a good or service shall be paid by the importer of such good or service.

(2) TIME OF IMPOSITION.—The tax imposed by subsection (a) shall be imposed on imports at the time of entry.

“(d) Special Account.—The tax on imports under subsection (a) shall be collected by U.S. Customs and Border Protection and deposited into a special account. This special account shall be the source of payments to qualified United States exporters under section 3 of this act.

(e) Definitions.—

(1) A foreign country employs an indirect tax system and grants rebates of indirect taxes paid on goods or services exported from that country if such country imposes indirect taxes (including sales taxes and value-added taxes (VAT)) on goods or services, and permits a rebate of such indirect taxes paid on goods or services exported from such country.

SEC. 3. PAYMENTS TO UNITED STATES EXPORTERS TO NEUTRALIZE DISCRIMINATORY EFFECT OF BORDER TAXES IMPOSED BY IMPORTING COUNTRIES.

(a) Payments Required.—

(1) IN GENERAL.—Upon exportation of goods or services from the United States to any foreign country that employs an indirect tax system and imposes or applies indirect taxes on imports of goods or services at the border, the Secretary of the Treasury, acting through the Commissioner of U.S. Customs and Border Protection, shall, if requested by the exporter, pay to the exporter an amount equal to the amount of indirect taxes that the importing foreign country imposes or applies at the border to such goods or services, minus any United States taxes paid on such goods or services that have been rebated or funded upon exportation.

(2) INFORMATION TO BE INCLUDED IN REQUEST.—An exporter who requests a payment under paragraph (1) shall, in such request, identify the indirect taxes imposed by the importing foreign country and present proof of the payment of such taxes to the importing foreign country’s authorities within a reasonable period of time after exportation of the goods or services.

(b) Special Account.—The payments required under subsection (a) shall be paid from amounts contained in the special account authorized under Section 2 of this act.

(c) Definitions.—

(1) A foreign country employs an indirect tax system and imposes or applies indirect taxes on imports of goods or services at the border if such country imposes indirect taxes (including sales tax and value-added taxes (VAT)) on goods or services, and imposes or applies such indirect taxes on imports of goods or services at the border.

PES: This bill imposes a tax on imports from any foreign country that: (1) employs an indirect tax system, and (2) grants rebates of indirect taxes paid on exports from that country. This tax shall be collected by the U.S. Customs and Border Protection (CBP) and deposited into a special account.

The bill requires the CBP, upon request of a U.S. exporter, to pay to the exporter from this special account an amount equal to the amount of indirect taxes imposed by the importing foreign country, minus any U.S. taxes rebated or funded upon exportation.

Edited by TexAgRepublican

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Nationalists, and to a lesser extent progressives, generally support tariffs, and are the first to support this bill. On the other hand, globalists and business conservatives, who generally support free trade, can be expected to oppose it.

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