Everyone likes to start the weekend on a positive note, right!?!?
So we’re sorry to report that new data released this week showed that American companies paid another $61 million in unnecessary taxes in April because Congress still has not renewed the Generalized System of Preferences (GSP) program. More than a quarter of those taxes ($15.7 million) were paid on imports from India, and nearly $30 million more were paid on combined imports from Thailand, Indonesia, Brazil, and the Philippines.
From August 2013 through April 2014, California companies paid approximately $75 million in taxes because of GSP expiration – nearly $30 million more than the next highest state! Imports destined for New Jersey, Texas, New York, Illinois, Florida, and Georgia each faced between $25 million and $50 million in extra taxes. A total of 40 states had estimated tariffs paid of $1 million or more because of GSP expiration over those nine months, as shown below.
At an average of about $1.84 million per day in new import taxes, GSP expiration has cost American companies an estimated $570 million from August 1, 2013 to today (June 6). While Members of Congress and their staffs enjoy the weekend, their constituents will pay nearly $4 million more in higher taxes. Happy Friday?