Feb 3, 2017

Gary Cohn hedges on border tax reform

Gary Cohn (Andrew Harnik/AP)

Trump Chief Economic Advisor Gary Cohn wouldn't commit to the border adjustment tax, a proposed duty hike on corporate imports, during an interview Friday on CNBC.

Why it matters: Unified Republican government under President Trump has revealed the diversity of opinion on the right toward tax reform:

  • Donald Trump is reportedly skeptical that border adjustment will really protect domestic industry given that it will likely cause the value of the dollar to rise.
  • House Republicans like the idea because it is a Grover Norquist-approved means of raising revenue to cut the headline corporate rate.
  • Senate Republicans are divided depending on the relative clout of exporters and importers in their states.
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