Border Adjustment Tax: $260 Billion More Than You Thought

If the House Republican plan for a border adjustment tax were adopted, many large U.S. multinationals and others net exporters would receive more tax subsidy on their exports than tax owed on their other business activities. Without refundable credits, a 20% border adjustment tax would actually yield $260 billion in revenue beyond the expected $1 trillion.

Trump Tax Plan Could Negatively Impact Giving

President Trump’s proposal to cap itemized deductions would cause a drop in charitable giving. For those giving above the cap, the net cost would jump from $0.60 per $1 of giving to an unsubsidized $1 per $1 of giving. Because a 1% increase in the price yields a 1% drop in giving, $17.6 billion in annual giving could evaporate.

Who Will Pay for Hillary Clinton’s Tax-Code Social Engineering?

Hillary Clinton wants to double the child tax credit for children under 5 and increase the refundability of the credit for more low-income households. Her proposal will further exacerbate the tax disparity between childless households and families with young children. And, by adding substantially to the federal deficit, the policy will shift the cost of raising today’s children onto future generations.

Broaden the Base — A Tax Reform Visualizer

To broaden the tax base, lawmakers will need to do more than close obscure tax loopholes. They will need to limit itemized deductions. These tax breaks costabout $176 billion in 2016 or enough to finance a nearly 13% tax cut for every individual income tax bracket. And they add significant complexity to the tax code.

Bernie Sanders’ State Wants to Unlearn the Lesson of Competition

On July 1, the state of Vermont is set to impose a $1,000 per day per product fine on any food manufacturer who fails to disclose on the product label if any ingredients contain genetically modified organisms (GMOs). The effect of the new law will be to reduce choices for consumers, limit supply, and increase food prices. And these consequences will be felt far beyond the tiny state’s borders.

Obama’s Wall Is Bad Too

Donald Trump’s proposal to build a wall between the United States and Mexico has been widely criticized. But the Obama administration is building its own wall around the United States. The Obama wall is built of rules that inhibit U.S. firms from pursuing inversions to escape the punishingly high US corporate tax rate. Both walls will harm Americans.