Bill To Reduce Tariffs Heads To President’s Desk
Last Tuesday the U.S. Senate passed H.R. 4923, The American Manufacturing Competitiveness Act of 2016, by unanimous consent, sending it to President Barack Obama for his signature.
This bill would create a Miscellaneous Tariff Bill (MTB) process to eliminate tariffs on inputs and other products that aren’t produced or available in the United States. As Bloomberg explained, the bill “would let companies ask the International Trade Commission to reduce or suspend tariffs on chemicals or other items that generally aren’t available in the U.S.” and “would replace an earlier system of tax relief that expired at the end of 2012.” Over the last three years, since that 2012 law expired, Bloomberg said, “[C]ompanies have paid about $2.5 billion in higher taxes on such imports …”
The. U.S. House Ways and Means Committee has available on its website a short graphic that explains how the new MTB process would work. The website also contains links to the full text of the bill, bipartisan praise for it, and a list of the tax implications of it.