Border adjustment faces widespread criticism, but finding alternatives proves a tall order
.. border adjustment isn’t dead, and that is partly because Republicans haven’t developed palatable alternatives that avoid huge budget deficits or prevent the corporate tax base from fleeing abroad.
.. it would raise an estimated $1 trillion over a decade to help pay for cutting the corporate tax rate to 20% from 35%. Second, border adjustment reshapes the U.S. tax base around domestic consumption, making it harder for companies to escape U.S. taxes by putting their manufacturing, intellectual property or headquarters outside the country.
.. Deep tax cuts face tougher Senate procedural hurdles that would likely require them to expire after 10 years.
.. Charles and David Koch, said Thursday that it is activating a
“grassroots army” against border adjustment and targeting Ways and Means members.
.. it cuts rates and matches how other countries tax their companies’ foreign earnings.