A controversial proposal to tax all goods and services coming into the United States has a better chance of becoming law than many on Wall Street suspect.
The so-called “border-adjusted” tax is part of the House tax overhaul plan that also would reduce the corporate rate from 35 percent to 20 percent.
The idea is to tax goods as they come into the country from overseas, but to avoid taxing U.S. exports at all. For instance, a car imported into the U.S. from Mexico would be taxed, but the American-made steel sent to Mexico would not.
