Report: Kentucky would be among the states most harmed by "borde - WDRB 41 Louisville News

Report: Kentucky would be among the states most harmed by "border adjustment" tax

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Ford's Kentucky Truck Plant in Louisville Ford's Kentucky Truck Plant in Louisville

LOUISVILLE, Ky. (WDRB) --  A new report concludes Kentucky would be among the handful of states most affected by a 20 percent tax on imported goods that some Congressional Republicans support as part of a broader tax overhaul.

Kentucky would be the fifth-most “sensitive” state to the so-called “border adjustment tax,” according to the report by Americans for Prosperity, a conservative group that opposes the tax.

Kentucky imported $39 billion worth of goods in 2014, or about 21 percent of the state’s economy, according to the report.

Imports range from 2 percent (South Dakota) to 27 percent (Michigan) of each state’s gross domestic product, according to the report, which draws on 2014 U.S. Census data. Indiana, where imports account for 15 percent of the economy, would be the 16th-most-affected state.

The report cites Kentucky’s heavy automobile manufacturing presence as one reason the state would be harmed by the tax, because automakers import a lot of parts and components for vehicles that are assembled at U.S. factories.

With 18,500 auto manufacturing jobs, Kentucky was the fourth-highest state in terms of auto employment as of 2014, according to the report.

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