What happens when Congress allows GSP to expire? According to a new report published today by the Coalition for GSP, the combination of higher taxes and the resulting lost sales force companies to take a number of harmful actions, including layoffs, hiring freezes, benefit cuts for workers, and delayed investments.
The Real Impacts of GSP Expiration-How Higher Taxes and Lower Sales Hurt American Jobs and Investments is based on the survey responses of hundreds of companies in nearly 40 states that import under the GSP program. Among the key findings of the survey:
- Small businesses are disproportionately harmed by GSP expiration
- Nearly 80 percent of companies reported lost sales because of increased import costs
- More than 30 percent of companies reported delaying hires and capital investments, both of which would help the US economy grow
- More than 10 percent of companies reporting laying off workers and cutting existing benefits, both of which send the US economy backwards
Finally, the report provides specific examples for each of these impacts from more than 30 different companies. A copy of the report is available to download here.