April 6 | By: Logan Finucan.
If the casual observer has heard anything about the border adjustment tax (BAT), they could be forgiven for believing that it is simply a tax on imports. In the age of Trump, when snap tariffs are routinely threatened, this is hardly an irrational assumption. However the idea of a BAT is far more complex than this and is embedded in a larger plan to radically transform the corporate tax code.
The Republican-backed idea is to rework the corporate income tax into a “destination-based cash flow tax” (DBCFT). Rather than a tax on profits, it would become a tax on revenue from all sales of goods and services in the U.S., less wages and other U.S. expenditures.