House Plan's Bad Math: Over-Estimates of Revenue from a Border Adjustment

An analysis of revenue projections for the proposed border adjustment tax.

April 24, 2017

Article
Current political and economic issues succinctly explained.

More on:

Budget, Debt, and Deficits

U.S. Congress

Capital Flows

Trade

One of the largest revenue raisers in the House Republicans’ framework for business tax reform is a “border adjustment.” However, projections of revenue from the border adjustment overstate revenue in two ways. The medium-term projections assume that there will be no or very limited avoidance of a border adjusted tax. The long-term revenue projections require an unrealistically large trade deficit. Download the full paper on the Social Science Research Network.

More on:

Budget, Debt, and Deficits

U.S. Congress

Capital Flows

Trade

Creative Commons
Creative Commons: Some rights reserved.
Close
This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) License.
View License Detail
Close

Top Stories on CFR

Human Rights

The United States can only promote human rights abroad if it begins from a position of humility, acknowledging that the struggle to make America a more perfect union is ongoing.

Middle East and North Africa

The kafala system regulates the lives of tens of millions of migrant laborers in the Middle East, but growing outrage over human rights abuses, racism, and gender discrimination has fueled calls for reform.

Europe and Eurasia

Azerbaijan’s success in the conflict over Nagorno-Karabakh means Putin’s peace deal is likely to last. It also rules out further diplomacy.