House Republicans have made Border Adjustment Tax a central component in their efforts to overhaul the tax code. This element of the plan—which would tax U.S. imports but not exports—is opposed by companies that produce goods abroad or import materials needed to produce goods in the U.S., but welcomed by big manufacturers who produce goods in the U.S. and sell them abroad.
Bloomberg Government convened economic experts for a conversation on possible economic and political implications of these actions, their impacts on trade and the potential ramifications for American consumers and companies.
Economic Outlook: Analyzing the Border Adjustment Tax Plan
The Border Adjustment Tax is a debated element of corporate tax reform which could have implications for a range of industries. Economists Gordon Gray and Chad Bown discussed whether the tax would raise prices on goods sold within the US, and how the amounts of the import tax and export subsidy would impact the outcomes.
The Intersection of Tax and Trade
House Republicans have made the Border Adjustment Tax a critical part of their tax plan, but the details of its implementation leave many questions to be answered. Cody Lusk, Warren Maruyama and Brian Reardon responded to vital questions surrounding the tax plan and its potential impact on trade.