Gary Cohn hedges on border tax reform
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.