Trump embraces border adjustability

Tax Hot TopicsTrump has embraced the concept of a ‘border adjusted’ tax, though he stopped short of specifically endorsing the border adjustability provision at the heart of the House Republican tax plan.

Trump said he “certainly supports a form of tax at the border” and that it “could lead to a lot more jobs in the United States.” Trump had previously offered conflicting statements on the concept, and his endorsement gives a big boost to the House Republican plan.

House Republicans are currently writing a tax reform bill based on the blueprint they released last spring. The most controversial aspect of the plan would make business taxes “border adjustable,” meaning that gross receipts from exports would be excluded from income, while any imports could not be deducted.

The idea has split the business community, with many Republicans openly criticizing it. Trump’s support could make it much easier to pass in the House, but it may still face an uphill battle in the Senate. Senate Finance Committee Chair Orrin Hatch, R-Utah, appears committed to writing his own bill, possibly centered around the idea of eliminating the double tax on corporate earnings. Trump has also hinted that he may release his own plan. He is expected to reveal more about his intentions on tax reform in a speech to Congress on Feb. 28.

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