As some leading lawmakers in Washington, D.C., explore potential changes to the federal tax code, one idea in particular — the creation of a border adjustment tax — is likely to get more and more attention from many Midwest-based firms.
In the largest binational trading relationship in the world, no crossing matters more than the link between Detroit and Windsor, Canada. Currently, about 25 percent of the goods that move between the United States and Canada do so across the Detroit River via the 85-year-old, privately owned Ambassador Bridge. It is the busiest commercial crossing in North America, and one where users often face long delays and where traffic has steadily risen since the last recession.
A new bridge, the New International Trade Crossing, is scheduled to open by 2020, but as leaders of a group of the Midwest’s state and provincial legislators note, this binational infrastructure project still requires action from the U.S. government.
In a letter sent to President Barack Obama in August, the two chairs and two co-chairs of the Midwestern Legislative Conference Midwest-Canada Relations Committee ask for a federal commitment to support and staff a U.S. customs plaza at the New International Trade Crossing.