Sen. Tillis and Budd announce opposition to tax increase that harms North Carolina farmers
North Carolina Senators Thom Tillis and Ted Budd signaled their opposition to the duty drawback repeal in the House Reconciliation package. The public comments from Tillis strongly indicate that the tax increase on North Carolina farmers will not be included in the Senate’s version of the reconciliation package.
Additionally, Congressman Greg Murphy announced his opposition to the duty drawback repeal.
What is the Duty Drawback provision?
The Duty Drawback provision allows exports to be refunded or reduced certain duties, taxes, and fees collected on imported goods that are then exported. The idea is to reduce the taxes on goods that are later exported and not intended for the domestic market. This has long been a staple of American trade policy, with the first duty drawback being adopted in 1789.
This policy is particularly important for North Carolina tobacco farmers, who rely on some imported ingredients as they prepare North Carolina tobacco for export across the globe.
The House Reconciliation package repealed duty drawback provisions on certain merchandise. Without this key protection from double taxation, North Carolina tobacco farmers would suffer, potentially putting thousands of jobs at risk.
Farmers encourage North Carolina Senators to protect farm jobs
Following the passage of the House Reconciliation package, North Carolina farmers took action through Our Ag Future, an initiative of the NC Chamber that promotes the state’s agricultural sector. Our Ag Future launched an advertising campaign and grassroots coalition to raise awareness about the negative impacts of repealing the duty drawback provisions. The advertising encouraged Senators Tillis and Budd to protect North Carolina farm jobs by opposing this legislation.
Tim’s Take: The public comments from Tillis, Budd, and Murphy, along with the overwhelming opposition from North Carolina farmers, indicate that the duty drawback repeal provision will likely get removed from the Senate’s version of the reconciliation package.
