GOP’s Border Adjustment Tax Reform Plan On Life Support
February 18, 2017
40 Comments
on
House Republicans desperately want to reform taxes, but so far the only plan they have developed has gained no leverage. That's because border adjustment makes up a majority of the plan, which few, including top retailers, want anything to do with.
The border adjustment is a tariff. It adds a tax on imports, which will inevitably raise prices on consumers. Common sense economics: A business must make a profit in order to supply goods and services. It cannot do that without money. In order to make money when a tax is added or raised, the business must raise the price on its goods in order to make that profit.