Page 7 - Border Adjustment News Today

So, senate leader, majority leader mitch mcconnell has said he thinks the prospects for a border adjustment part of the plan are rather bleak, and yet, he still says it should be revenue-neutral. what are the alternatives being discussed? and is there a way that the border adjustment can either have a transition that would make it more palatable or some kind of half border adjustment? >> yeah, so, i think you can say yes to all of the above to what you just said. what we have to do, as an old ta...

He thinks the prospects for border adjustment are rather bleak. what are the alternatives being discussed and is there a way that this border adjustment has a transition that would make it more palatable or some kind of -- s before you can say yes to all of the above. as a tax writer, you have to weigh alternatives. it is obvious that you can and should have some kind of adjustment and phasing period if youre going to have adjustment. it makes the tax code the most competitive out of any version...

Constituency in chicago youre paying your income tax including the cost of your product. when its exported a foreign jurisdiction is taxing it as well. the problem is the inverse is not true. if you manufacture something overseas, they take the taxes off at the border and we dont tax it here. what were looking for is a level of parity. one of the proposals is this concept known as border adjustment. here is the larger point. we have to put this all in the context of updating our tax code. so wha...

The ways and means committee have been working since then to fill the meat on the bones. elizabeth: thats where you set. >> were well ahead of the president in terms of filling in the details. if you look at the presidents frame work versus ours, were largely in agreement. there are some things left open. if were not moving unified moving forward we have no chance. the president knows that. elizabeth: what is open? >> the border tax is one issue thats left open in my opinion. its critical for am...

This? >> the history is it does produce more growth. if you pump more money, people will spend it. >> will we get from 2 to 3%? >> no. what makes the economy grow is one, more people working and, two, people working and producing more stuff. some of this will help in that dwreks. a lot of them have nothing to do with that. we have a labor force thats aging, productivity thats been slow for a whole variety of reasons. one of the things that was interesting to me, things that were never mentioned ...

This into a bill that can be passed and the president can sign and theres lots and lots of details that are going into how that will pay for itself. >> the territorial tax system, is that a border adjustment tax? what is it? >> a territorial tax system means u.s. companies will pay income on income related to the u.s. so its territorial u.s. companies will not be subject to worldwide income, which has made them uncompetitive. >> is there a reason to be concerned that perhaps the republicans migh...

Softwood? >> yes. and. >> dont see any retaliatory action on the part of canada? >> im not aware of anything that weve violated so i dont know what they could do that would be a legitimate action. >> what about a border adjustment tax? >> well, it would be better to address that question to who will be working on the tax adjustment. >> i would hope that the growth would over time get to be better than that. president obamas the only president in many, many, many that didnt have at least one year...

Does that include a border adjustment tax? president told me two weeks ago he is not in favor of a border adjustment tax, does that mean that you can put that tax within a trade deal, and you dont have to have an import tax within the tax reform package? >> my fear, if you go that direction, you make it moro ranm and more complicated, and the ability to build that on-ramp of where there would be you know, time to redesign disbution models, ag acquisition models, a benefit in border adjust bill a...

What happens is you have these individual and business tax rate cuts, but in the long term there is a big cost. and then the president is looking at how the economy grows as to how it will pay for these tax rate cuts. so the devil is in the details. on the face of it. people want their money back but when you go down the road, thats when the problem happens. >> one of the details, this border adjustment that we know that paul ryan, speaker of the house supports. we dont know if it will be part o...

So this is hot off the presses. well have for you pop tyou. first one, big tax reform and tax reduction will be announced next wednesday. so hes putting that day in there again. im wondering what could he possibly add. >> this is the area i think on which he probably has the most chance for getting democrats to work with him. and i would point out that this is not happening in a vacuum. just because republicans control the white house, house and senate, does not mean that this is done, that tax ...