by State Representative Beau Baird
There’s a little known loophole in the American tax code that you could be forgiven for not knowing about. But the double duty drawback loophole affects taxpayers both in Indiana and across the country, as it sends billions of our hard-earned taxpayer dollars right into the coffers of foreign tobacco companies exploiting our system.
The double duty drawback is a byproduct of changes made by Congress to our import tax rules many years ago. While the change was small, it opened the window for foreign tobacco companies to gain a leg up over their competitors here in America. These companies have been collecting billions in refunds for years now, and it’s believed that over the next decade the double duty drawback loophole will cost you, the Indiana taxpayer, a whopping $12 billion unless something changes.
I’m happy to say that President Trump has recognized the insanity of the double duty drawback loophole and wants to fix it. As a constant advocate for fair trade and America first policies, he has been a chief advocate for closing this provision. His legislative package, now awaiting a vote in the Senate, contains a provision that would do the commonsense thing and close the loophole, stopping foreign companies from collecting taxpayer money and trimming the deficit as a bonus. It doesn’t take a genius to see that’s sound policy.
Indiana voters are tired of their paychecks helping to fund overseas cigarette makers. Sen. Banks and Sen. Young should get the President’s bill, and the double duty drawback language, across the finish line.
