If President Donald Trump is serious about his push for a 20% border adjustment tax on Mexican imports, the ranking democrat on the House Ways and Means committee predicts he will face an uphill battle.
"We're hearing from retailers all across the country that using a border adjustment tax will raise costs to consumers and be very damaging to small and midsize businesses across the country," Congressman Lloyd Doggett tells Newsradio 1200 WOAI.
Trump initially floated the idea of an import tax last week, but has since softened his stance.
Press Secretary Sean Spicer says the proposal is just one idea on a buffet of options to fund construction of the border wall.
"Imports (are) one way. I just want to be clear that we're not being prescriptive in saying that is the only way nor is the rate prescriptive," he told reporters aboard Air Force One.
He rebuffed questions from reporters about the impact of a 20% tax on imports from Mexico on American consumers, insisting such criticism was "short-sighted.
"Doggett (D-TX) says, as soon as the idea was floated, the business community started to push back, especially companies in Texas, which he feels would be hit the hardest.
"We rely on fresh produce, especially at this time of year,” he explains. "There are auto parts and every other type of part flowing up and down I-35.
"The latest census numbers, which come from 2015, show Texas businesses imported more than $84 billion from Mexico.
If a 20-percent tax were added and that cost was directly passed on to consumers, Texans would pay an additional $16.8 billion for the same goods and services.
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