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
5:35 pm (EST)

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

Afghanistan

A complete U.S. military withdrawal by September 11, 2021, could allow the Taliban to take over much of Afghanistan.

Somalia

Middle East and North Africa

Washington and Tehran seem determined to revive the deal that freezes Iran’s nuclear program, despite domestic criticism on both sides and the apparent sabotage of an Iranian facility.