COMMENTARY: Mini-BAT Is Key To Trump Tax Reform Effort

The Border Adjustment Tax (BAT) is taking on water on Capitol Hill according to sources.  The proposal has sparked a K Street lobbying bonanza with forces both supporting and opposing the BAT working Capitol Hill to spin the impact of the new tax.  Some are working on marketing a compromise plan informally called the Mini-BAT that may be an idea that saves Trump’s tax reform plan.

The BAT is a tax that only taxes imports and does not tax exports.  Goods made overseas and sold in the United States are subject to a tax.  Goods made domestically and sold overseas are likely taxed by the country that receives the goods, therefore they are not taxed.  This policy, in addition to a lowering of the corporate income tax, will encourage American companies to stay home and produce goods produced by American workers in the United States.

Currently, all companies producing goods…



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