The border-adjustment feature of the House Republican tax plan is the key to cutting the corporate tax rateand stimulating economic growthwithout a major increase in the budget deficit. The tax would produce more than $100 billion in annual revenue, paid for by foreign businesses that sell to Americans. Yet the idea of border adjustment has been under siege lately, mostly by critics who seem to misunderstand its effects. The House plan calls for cutting the corporate tax rate to 20% from 35%. It would also impose a 20% tax on all imports while giving a 20% subsidy to all exports. What would this mean in practice?

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Answer The borderadjustment feature of the House Republican tax plan essentially aims to shift the t... View the full answer