The Trump administration announced its tax plan on Wednesday, calling it the largest corporate tax cut in history. The proposal includes a significant reduction in the corporate tax rate, changes to the standard deduction for individuals, and a one-time repatriation of foreign earnings.
One thing the plan does not include is the much-touted border adjustment tax. President Donald Trump has been off-again and on-again in his support of that proposal, which is one of the key elements in tax reform schemes advanced by House Republicans. Treasury Secretary Steven Mnuchin said a BAT “doesn’t work in its current form” but didn’t rule it out completely.
The border adjustment tax has been the subject of some confusion, as administration officials in the earliest days of the administration described a BAT as a way to get Mexico to pay for a border wall. That rhetoric was quickly exposed as ridiculous and eventually dropped.
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