A plan hatched last summer by Congressional Republicans could usher in the largest change in 30 years to the way the U.S. government taxes corporations on income, imports, and exports, and it has not gone unnoticed by the global auto industry. GOP leaders including House Speaker Paul Ryan have proposed what they call a ?destination basis? tax system, also known as border adjustment, under which corporate profits would be taxed differently depending on whether the goods sold to generate that profit are imported or exported. The proposal seemed to be gaining steam earlier this year with the election of Republican Donald Trump as president and with the same party controlling Congress. As it gathered momentum, companies that rely on imports began to notice. Automakers such as Toyota have certainly been paying attention. ?Obviously we’re not in favor of a border tax,? Toyota Motor North America CEO Jim Lentz said last month. ?We don’t think that it’s good for this industry.? Lentz said Toyota is asking its dealers to ?get a lot more involved with the potential ramifications of a border adjustment tax.?
Price Hikes Expected

Although no specific action has been taken to implement an actual border tax, several estimates have already been floated on how car prices could be affected by what would effectively amount to a 20 percent levy on imports. The consensus is that prices on a vast majority of cars and trucks would rise. Of course, not all automobiles consum...