A Look at the House G.O.P.’s “Destination-Based Cash Flow with Border Adjustment”

Volume 4 No 3    |    Read Article

By Elizabeth V. Zanet

Last June, the House Ways and Means Committee released its tax reform plan, which includes sweeping changes to the U.S. corporate income tax. The plan repeals the current corporate income tax and replaces it with a new regime, commonly referred to as the border adjustment tax. This regime, which taxes imports and exempts exports, is viewed to be the principal funding mechanism for reductions in the corporate and individual tax rates. Elizabeth V. Zanet explains the anticipated workings of the proposal.    See more →