The border-adjustment tax that has been proposed by Speaker of the House Paul Ryan should be dead on arrival if it is put forward by the Trump Administration. It is bad trade policy, and would totally undermine the fine fabric of international trade law.
Part of the problem with the proposed border adjustment tax (“BAT”) is that different versions have been proposed. In its simplest version revenues from exports would be excluded when determining profits for tax purposes, and imports would not be deductible as a business expense. The proposed BAT is designed to raise revenues by an estimated $100 billion in annual revenue, and underwrite an overall reduction in the corporate tax rate from 34% to 20%.
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