Canadian Prime Minister Opposes U.S. Proposal For A Border Adjustment Tax
The U.S. Congress is expected to consider legislation this year that will reform the federal tax code. While no legislation has been introduced yet in either U.S. House or U.S. Senate, leadership in the lower chamber is working from an outline for reform released last year that includes a Border Adjustment Tax (BAT) that would exempt exports from tax calculations and tax imports. There is significant debate between the two chambers and the White House on the proposal, which would be used to “pay for” a drastic reduction in the U.S. corporate income tax rate.
In a question and answer session last week at an energy conference in Houston, Texas, Canadian Prime Minister Justin Trudeau left no question about how he feels about a possible BAT in the United States—he opposes it. Trudeau made it clear that “anything that creates impediments at the border—extra tariffs or new taxes—is something we’re concerned with.”