Taxing imports as a way to make U.S. companies more competitive with foreign factories will hurt consumers — and isn’t the best way for the federal government to chip away at a trillion-dollar deficit, according to Barron’s magazine.
Republicans who have proposed the “border adjustment tax” should focus on cutting spending, eliminating corporate welfare and cutting other taxes as a way to boost the economy and shrink the deficit, Barron’s says.
“The BAT is a bad idea, and it should be scrapped,” the magazine says. “If all corporate welfare were cut from the budget, as much as $100 billion a year could be saved, about matching the total expected from the BAT.”
The BAT is part of a plan by Speaker of the House Paul Ryan to change the tax code in a sweeping overhaul. The levy is aimed at boosting U.S. factory production by taxing imports while exempting U.S.