Monday, March 20, 2017
David Kamin (NYU) & Brad Setser (Council on Foreign Relations), House Plan's Bad Math: Over-Estimates of Revenue from a Border Adjustment:
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.