Capitol Report: What exactly is the GOP-championed ‘border adjusted’ tax?


Harvard economics professor Martin Feldstein

The House Republican plan to adjust taxes at the border, essentially subsidizing exports and taxing imports, has this week become one of the most talked about features of a broad corporate-tax reform plan.

House Speaker Paul Ryan and members of President-elect Donald Trump’s transition team met January 9 to discuss the plan, including the controversial “border adjusted” provision.

The general idea of the proposal is to tax imports at 20%, while exports are excluded from taxes in the form of rebates, said Chris Krueger, analyst at Cowen and Company. The border adjustment is arguably the most controversial component of the Republican plan to revamp the corporate tax code, he said.

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