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Why The Proposed Border Tax Adjustment Is Unlikely To Promote U.S. Exports

Friday, February 24, 2017 6:25
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(Before It's News)

from Liberty Street Economics

– this post authored by Mary Amiti, Oleg Itskhoki, Jozef Konings

There has been much debate about the proposed border tax adjustment, in which U.S. firms would pay a 20 percent tax on all imported inputs and be exempt from paying taxes on export revenue. The view among many economists, including proponents of the plan, is that the U.S. dollar would appreciate by the full amount of the tax and thus completely offset any relative price effects.

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Source: http://econintersect.com/pages/contributors/contributor.php?post=201702240653

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