————Because exports are consumed abroad, they’d be exempt from the tax-—
The constitution prohibits a tax on exports.
At issue is a universal tariff on all imports. The evidence seems to be that the concept of taxing every item imported on the General Agreement on Tariffs and Trade is not popular enough to pass muster.
Trump wants to make deals to achieve his trade goals. such a law would tie his hands. Trump wants to negotiate one on one to achieve a satisfactory balance of trade. His primary target is China from which he believes he can use the threat of tariffs and other barriers as leverage to obtain desired concessions.
The talk of a border tax is just talk, nothing more.
The issue is how soon will the corporate income tax be reduced and the big earnings $$$ parked off shore be brought into the economy
This IBD article is just more dung slinging by the globalist chimpanzees.
Another anti America globalist to whack.
Disagree. Changes to the tax code, including tax credits or income exclusions for exports and eliminating tax deductions for foreign expenses, need to be done through Congress. That is just to level the playing field with the way other countries add VAT to US goods and credit their own VAT on their exports.
Trump can do tariffs by himself as a negotiating tool in bilateral trade agreements, and as a disincentive for American businesses to outsource. That is separate from the main issue of tax reform.
The only thing wrong with the House plan is that the Corporate Tax rate should be 15% instead of 20%.