Koch Industries Criticizes Key Feature of House GOP Tax Plan
December 07 2016 - 4:57PM
Dow Jones News
By Richard Rubin
Koch Industries Inc., the conglomerate run by billionaire
brothers active in Republican politics, says a key feature of House
Republicans' tax plan could be "devastating" to American consumers
and the economy.
The company is taking aim at what is known as border adjustment,
which would add taxes to imports and remove them from exports as a
way of encouraging production in the U.S.
In a statement released Wednesday, Philip Ellender, president of
government and public affairs for Koch, said the proposal -- part
of the House Republican tax blueprint backed by Speaker Paul Ryan
-- would "distort the market" and raise prices. The company does
support a comprehensive overhaul of the U.S. tax system.
"While companies like Koch who manufacture and produce many
products domestically would greatly benefit in the short term, the
long-term consequences to the economy and the American consumer
could be devastating," he said.
Koch is run by billionaires Charles and David Koch, who have
funded a variety of think tanks and conservative interest
groups.
The company operates refineries, manufactures paper towels and
carpets and makes a wide variety of other products.
Koch's statement highlights just how difficult it will be for
Republicans to achieve their goal of revamping the tax code in ways
that would scramble the current system.
The House plan would lower the corporate tax rate and remove
taxes on U.S. companies' foreign sales. But the border adjustment
has drawn concern from retailers and limits on interest deductions
are also causing corporate consternation.
Write to Richard Rubin at richard.rubin@wsj.com
(END) Dow Jones Newswires
December 07, 2016 16:42 ET (21:42 GMT)
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