IDEAS home Printed from https://ideas.repec.org/p/iie/pbrief/pb17-3.html
   My bibliography  Save this paper

Border Tax Adjustments: Assessing Risks and Rewards

Author

Listed:
  • Gary Clyde Hufbauer

    (Peterson Institute for International Economics)

  • Zhiyao (Lucy) Lu

    (Peterson Institute for International Economics)

Abstract

Border tax adjustments—achieved by denying business deductions for imported goods and services and excluding exports of goods and services from the tax base—will be hotly debated as a key feature of the cash flow tax proposed in the Blueprint of House Speaker Paul Ryan and Ways and Means Committee Chair Kevin Brady. This Policy Brief examines border tax adjustments from the perspective of their compatibility with World Trade Organization (WTO) rules, their possible impact on the dollar exchange rate, and the resulting effects on tax incidence brought by exchange rate movements. The authors conclude that not only are dogmatic assertions on the WTO compatibility of BTAs unwarranted but also are confident predictions of the induced exchange rate impact. The Trump administration and Congress will need to evaluate BTAs from different angles, realizing that decisions taken will carry the US economy into uncertain terrain.

Suggested Citation

  • Gary Clyde Hufbauer & Zhiyao (Lucy) Lu, 2017. "Border Tax Adjustments: Assessing Risks and Rewards," Policy Briefs PB17-3, Peterson Institute for International Economics.
    • Handle: RePEc:iie:pbrief:pb17-3
    as

    Download full text from publisher

    File URL: https://www.piie.com/publications/policy-briefs/border-tax-adjustments-assessing-risks-and-rewards
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bob Carbaugh & Toni Sipic, 2017. "Paying for the Trump Wall Boondoggle," Challenge, Taylor & Francis Journals, vol. 60(4), pages 386-396, July.
    2. Roman Stöllinger, 2020. "Getting Serious About the European Green Deal with a Carbon Border Tax," wiiw Policy Notes 39, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb17-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peterson Institute webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/iieeeus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.