That’s the approximate taxes paid by American companies on GSP-eligible goods since the Senate voted 97-1 to renew GSP last week. With the House recessing for Memorial Day, that will increase to about $33 million by the time Congress returns to DC on June 1.
With benefits delayed 30 days between between enactment and implementation (i.e., $50-$60 million more in taxes), American companies likely will pay at least $100 million in extra taxes between the Senate vote and the removal of GSP taxes.
And what about tariffs refunds? Even in a best-case scenario, American companies may be waiting until mid-October to get back the $1.2 billion in taxes paid to date (plus those that keep accruing).
So what’s all this mean? It’s crucial that the House approve the Senate-passed renewal legislation immediately upon returning to DC to prevent minimize further taxes or refund delays.
It’s also crucial that GSP importers contact their Representatives while they’re at home next week to urge such action: call the local offices about possible meeting times, go to town halls, and otherwise let them know that further delay in GSP renewal is hurting constituents.
We’re already about 2 years past a “timely” GSP renewal. With Senate procedural issues out of the way, it’s time for the House to act.