Based on data released this week, continued GSP expiration cost American importers another $60 million in April 2015. At nearly $2 million a day in higher taxes, GSP expiration’s estimated cost through today (June 5) is about $1.23 BILLION paid by American companies.
Since the Senate approved GSP legislation by a vote of 97-1, American importers have paid about $40 million more in taxes while waiting for the House to act. After nearly 700 days of expiration, exasperated employers around the country find themselves asking: when will the madness end???
It’s not as if the costs of expiration have been declining. In fact, April 2015 was the most costly month in terms of taxes paid for 9 different states: California, Florida, Kansas, Michigan, Nebraska, New Mexico, Tennessee, Utah, and Washington. Imports into Kansas faced more than $300,000 in extra taxes – about 20 percent increase over the previous monthly high (or low, depending on how you look at it). Imports into Washington faced more than $1 million in extra taxes, about 18 percent higher than any previous month.
April 2015 was the second-most costly month for 6 others: Alabama, Colorado, Georgia, Illinois, North Dakota, and Wisconsin. Imports into Wisconsin, the home state of Ways and Means Committee Chairman Paul Ryan, faced nearly $800,000 in extra taxes in April because GSP remains expired.
The map below shows the breakdown of imports and tariffs paid by state from August 2013 to April 2015 because of GSP expiration.
A retroactive GSP renewal would refund taxes paid to companies in every state. Many of the companies that would benefit are among the 700+ companies and associations urging Congress to renew GSP. If you’re not already on the list, please take a moment to add your name here.