Publications: Notes at the Margin

Border Adjustment Import Taxation (August 15, 2016)

 

The Republican majority in the House of Representatives has put forward a proposal that would drive a wedge between foreign and domestic oil prices. Under this proposal, advanced by Speaker of the House Paul Ryan and House Ways and Means Committee chairman Kevin Brady, domestic crude oil and products produced from domestic crude oil would receive a twenty-percent benefit compared to imported crudes and imported products. Further, under the proposal, exports of domestic crude or products manufactured from domestic crude would receive a rebate of twenty percent to make them competitive on the world market. If the proposal were passed, the consequences for oil commodity markets would be significant.

 

To request subscription information for Notes at the Margin, please Contact Us or send us an Information Request.