Energy prices and the border adjustment tax (energy at haas)

07 / MAR / 2017

Meredith Fowlie / energy at haas

In a recent Saturday Night Live episode, Baldwin-as-Trump is casting about for clever ways to get Mexico to pay for the border wall. But with each attempt, the joke is on him, and Americans are left footing the bill.

The following week, in what could be construed as life-imitates-art, White House Press Secretary Sean Spicer announced a plan to finance the wall : Use the Congressional Republicans’ proposed tax reform “as a means to tax imports from countries that we have a trade deficit from, like Mexico”.

This was a confusing development on many levels. For one thing, it reversed Trump’s earlier opposition to the border adjustment tax proposal on the grounds that it is “too complicated”. Moreover, Trump’s key arguments in favor of the border adjustment (i.e. boosting employment and made-in-the-USA exports) are inconsistent with what the border adjustment is designed to do (raise revenues in a trade-neutral way).

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Energy prices and the border adjustment tax (energy at haas)
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