A number of folks asked me what I thought of this part of the Republican’s tax plan–their corporate tax replacement–and that required some thought, as it’s very different than what we have. Here’s what I got, over at WaPo.
I couldn’t fit it in the piece, but I wanted to reference the more jaundiced take on the proposal–I’m pretty skeptical of some of the claims of proponents, but find a few attributes worth considering–from Senate Democrats, who summarize the replacement as follows:
The key feature on the business side of the plan—a destination-based cash flow corporate income tax with “border adjustments”—is confusing, untested, leads to bizarre results, and is possibly illegal under WTO rules.
Other than that, they’re OK with it…
I also predict that the increased costs that this proposal implies for retailers and other major importers will kill its legislative chances. That said, given recent developments, I pretty heavily discount such predictions, by myself and anyone else.