If importers can be protected from currency uncertainties by way of an alternative tax, they may come to support a reform plan that promises lower rates than what they will get under traditional tax reform. The catch is that the alternative tax is designed so that, as a business’ import costs decline, the BAT starts looking more and more appealing. The alternative tax is designed to preserve one of the most appealing features of the BAT: its ability to curtail corporate tax dodging by multinationals. All import costs from third parties will be deductible under the alternative tax. It is an insurance policy that will enable consumers, retailers and other skeptics to get behind tax reform that has a real chance of growing our economy.

Source: Forbes March 09, 2017 17:28 UTC