Global Trade and Customs Journal

Volume 12 (2017)

Volume 12 (2017) / Issue 6

Jorge Miranda, 'Analysis and WTO Implications of the Proposed ‘Border Adjusted’ Tax' (2017) 12 Global Trade and Customs Journal, Issue 6, pp. 214–228


The proposed ‘border-adjusted’ tax would be superior to the corporate income tax because it would derail a multiplicity of tax avoidance strategies and provide significant incentives for investment. However, if enacted with discriminatory deductions, it will likely unleash a flood of countervailing duty actions against US products. To the extent the expected boom in US exports is deflated through such actions, the US dollar cannot be reasonably expected to appreciate in a proportion such that the effects of this tax on US import prices are neutralized. So this would be the ‘Holy-Grail’ of tax reform, but with a price tag attached.

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ISSN: 1569-755X
ID: GTCJ2017029