Stories

Facts Matter

Republicans may target imports to raise money

The issue:

Republicans want to lower corporate taxes, but in a way that rewards companies that make things in the U.S. and export them abroad, while also taxing companies that make things in foreign countries for sale in the U.S.

The facts:

A border adjusted corporate tax would reduce taxes on exports while raising them on imports. A House Republican proposal to create this tax could raise more than $1 trillion and allow the overall corporate tax rate to be reduced to 20%.

Why it matters:

The Republican Party is on the hunt for policy ideas that would raise money and appeal to the white working class while not betraying anti-tax principles. Border adjustment would increase revenues while shifting the tax burden from companies that support domestic employment to those that do business abroad. They won't get there without a fight, as powerful industries like retailers that face higher taxes will wage all-out war against it.