Jan 27, 2017

Theory of the day: Border adjusted tax is pointless

Alan Viard of the American Enterprise Institute argues that in the long run a border adjusted tax, that would raise taxes on imports, will be a wash because America can't run a trade deficit forever. Eventually we'll have to run commensurate surpluses to make up for what we've spent. So when we do start running those surpluses, our tax receipts will go down, eliminating the benefit of the tax in the long run.

Counterpoint: Former Reagan economic adviser Martin Feldstein, however, emails Axios to take exception with this theory. "The U.S. has had a trade deficit for each of the past 30 years. So apparently the world is prepared to allow us to keep doing this without paying them back."

Why this matters: The Trump administration has floated a border tax to raise $10 billion to pay for a wall on the Mexican border. And even if Viard might technically be right in the (very) long run, that won't stop policy makers from trying to grab this extra revenue while they can.

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Gov. Tim Walz to mobilize Minnesota's full National Guard

Photo: Steel Brooks/Anadolu Agency via Getty Images

Minnesota Gov. Tim Walz announced on Saturday he is activating the full National Guard to respond to street violence in Minneapolis that broke out during protests of a police encounter that left a black man, George Floyd, dead.

Why it matters: This is the first time the state has activated the full National Guard since World War II. The Minnesota National Guard tweeted, "We are "all-in" to restore order and maintain and keep the peace in Minnesota." There are already around 700 National Guard troops in the city, and the order could bring another 1,000, The Star Tribune writes.

Go deeper...The aftermath of George Floyd's death: Everything you need to know

Updated 27 mins ago - Science

Live updates: SpaceX attempts to launch NASA astronauts Saturday

SpaceX's Falcon 9 rocket on the launch pad. Photo: NASA/Joel Kowsky

At 3:22 p.m. ET today, SpaceX is expected to launch NASA astronauts Bob Behnken and Doug Hurley to the International Space Station for the first time.

Why it matters: The liftoff — should it go off without a hitch — will be the first time a private company has launched people to orbit. It will also bring crewed launches back to the U.S. for the first time in nine years, since the end of the space shuttle program.

Follow along below for live updates throughout the day...

In photos: We've seen images like the protests in Minneapolis before

Photo: Kerem Yucel/AFP/MPI/Getty Images

The photos of protests around the country following the death of George Floyd during an encounter with Minneapolis police are hauntingly familiar. We’ve seen them many times before, going back decades.

Why it matters: "What is also unmistakable in the bitter protests in Minneapolis and around the country is the sense that the state is either complicit or incapable of effecting substantive change," Keeanga-Yamahtta Taylor, an assistant professor of African-American studies at Princeton University writes in the New York Times. The images that follow make all too clear how little has changed since the modern Civil Rights Movement began in the 1950s.